Claims of collusion in South Africa's horseracing industry are now galloping to the Competition Appeal Court.
Phindi Kema, founder of the African Race Group, has accused racing operators Phumelela Gaming and Leisure and Gold Circle, and the industry's regulatory body, the National Horseracing Authority (NHA), of anti-competitive behaviour.
Kema claims that the two companies are in partnership and intend to control betting and racing in the Western Cape through a trust that owns 35% of Phumelela.
The thoroughbred horse breeder first opposed the Western Cape arrangement before the Competition Commission in 2011 and the commission ruled in her favour in March last year. The companies took the matter on appeal to the Competition Tribunal and won.
"We then appealed the Competition Tribunal decision because we believe it did not consider [all the facts]," said Kema.
"This is about market share, it is not personal. We cannot have a situation where one entity controls 90% of the market."
The matter is set down for September in the Competition Appeal Court.
Recently Kema wrote to the British Horseracing Authority asking it to take issue with banking group Investec's director Bernard Kantor in the matter.
Investec is the sponsor of one of England's biggest races, the Epsom Derby, and Kantor is a non-executive director of Phumelela Gaming and Leisure.
She said the two racing operators have direct representation in the NHA and this affects the regulator's independence.
"It is not difficult to see the influence of Bernard Kantor's stable in South Africa's ailing horseracing industry. The chairman of Phumelela is Peter Malungani, who is the executive director of Investec and therefore reports to Bernard Kantor," wrote Kema. "I would like to appeal to the British Horseracing Authority to encourage Mr Bernard Kantor to clean up his own mess in South Africa so we can all rest easy in the knowledge that his role in horseracing in his homeland has been constructive."
Kema, who commutes between England and South Africa, said yesterday: "I have so much respect for Mr Kantor but I am not going to turn a blind eye to what is not right in South African horseracing and pretend it is all good. No.
"I would not have gone this far if I did not believe that we have a strong case. It is a matter I am prepared to take to the Constitutional Court."
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