Here is a detailed account of the situation where both Phumelela and the NHA find themselves in litigation regarding failure to regulate on the one hand, and breaches of licence condition on the other. I have no idea who Nadomine are, however it is quite clear that this entity has aspirations on entering the market and has taken on the unholy alliance in an effort to force their hands. I apologise that it is a long summation, and difficult to list everything, however the meat of the story is contained and there is sufficient information to make your own conclusion as to whether there is merit in the action or not. Questions that must be asked are why are we unaware of this legal action that if successful, could have far reaching consequences for all in racing and what is the end game plan for Nadomine?
In the SENS announcement of Phumelela on 12 September 2019 it mentions the fact that on 28 August 2019, the Province of Gauteng issued an invitation for anyone to express an interest to develop, own and operate a race meeting licence in Gauteng and to operate a totalisator licence in Gauteng.
Since corporatisation of horse racing in Gauteng and the inception of Phumelela, it has had a stranglehold over racing and operating a tote in Gauteng. No other business venture or party has been allowed to apply for and obtain a licence to compete with Phumelela. Since approximately 2000, Phumelela and Gauteng Province have each been receiving bookmakers’ levies which amounts to 6% of the total amount won by punters. In other words, when punters have had a winning horse racing bet, they contribute 3% of their winnings to Phumelela and another 3% to the Gauteng Province. This has amounted to hundreds of millions of Rand over the period. Phumelela has used its share of the 3% bookmakers levy to run its business and declare dividends.
Gauteng Province recently pulled the plug on Phumelela receiving its 3% of bookmakers’ levies. Phumelela has never had an entitlement to receive the 3% forever and a day. It is a listed company on the JSE. It should be able to keep itself alive on its own. Shareholders of Phumelela as opposed to horse racing have reaped the rewards of the 3% levy. There is no other independent company in South Africa that earns hundreds of millions of Rands from taxes. Any levy or tax imposed by any government should be used for its residents and citizens and not to make a limited amount of entities rich. Moreover, there is no public record of Phumelela accounting to the Gauteng Government for its use of the levies.
Now Phumelela complains that this invitation for an expression of interest for licenses is not fair because it “has not been consulted in respect of this invitation and neither is it privy to the thinking and objectives in this regard.” Phumelela continues with its complaints by saying that it is “facing legal actions principally relating to amendments to the Gauteng Gambling Regulations and the Public Protector's report into thoroughbred horse racing. This is public domain information”.
Recently Phumelela published on its website that due principally to a decline in TAB tote revenue in the 2018-19 racing season and the withholding of the Gauteng provincial levy, prize money at its racecourses will be reduced by around 13% from next month. Also, it said that Phumelela is currently negotiating with the Gauteng Government and the Gauteng Gambling Board in an attempt to have its share of the levy reinstated.
The question must be asked why Phumelela feels that it is entitled to receive the 3% back from the GGB when it is clear that the majority of the levy monies received over the years have been utilised to enrich shareholders. The sport of horseracing has not benefitted, neither have the stakeholders outside of the inner circle.
It seems that Phumelela has not made full disclosure to its shareholders, the racing community, the Gauteng Gambling Board and the Gauteng Province. A company by the name of Nadomine (Pty) Ltd has issued a court application in the Johannesburg High Court against Phumelela and the National Horseracing Authority (‘jockey club’). This was done before 31 July 2019. Nadomine has asked the court to declare that the licence granted by the Jockey Club to Phumelela to hold horse races at Turffontein Race Course be cancelled in terms of rule 44.3 of the jockey club. Nadomine submits that not only should Phumelela’s licence to race be automatically cancelled, the Jockey Club has failed in its duties as the regulator of horse racing to act independently and uphold its own rules.
I am told that if this case of Nadomine is successful, Phumelela would be found by a court of law to be racing in breach of its licence granted by the Jockey Club and thus be in breach of the Gauteng Gambling laws. Phumelela then faces losing its licenses granted by the Gauteng Province. Furthermore, Phumelela and the jockey club will be open to litigation for all losses suffered by bookmakers and punters because the races which were run at Turffontein were not sanctioned.
Rule 44.3 of the jockey reads as follows:- 44.3 A licence to RACE under the RULES shall be automatically cancelled if a RACING OPERATOR ceases to conduct itself in a manner which conforms with legislation in force for the time being in the Province in which the RACE COURSE on which the RACING OPERATOR intends to hold RACE MEETINGS is situated.
Nadomine’s case against Phumelela and the Jockey Club is summarised in the following manner: -
1. Clause 10 of the licence granted to Phumelela by the GGB reads as follows: The licensee shall make available visual broadcasts of race meetings for betting purposes. The licensee shall be entitled to recover reasonable costs for visually broadcasting such race meeting information, provided that such costs are approved by the Board.On 28 November 2017, the GGB commenced with a disciplinary hearing against Phumelela in terms of which it was charged with the following regarding the condition.
1. Clause 10 of the licence granted to Phumelela by the GGB reads as follows: The licensee shall make available visual broadcasts of race meetings for betting purposes. The licensee shall be entitled to recover reasonable costs for visually broadcasting such race meeting information, provided that such costs are approved by the Board.On 28 November 2017, the GGB commenced with a disciplinary hearing against Phumelela in terms of which it was charged with the following regarding the condition.
Phumelela is guilty of contravening the said Condition 10 in that Phumelela has failed and/or refused to provide visual broadcasts of race meetings for betting purposes to bookmakers at a reasonable cost approved by the Board, during the period 2014 to date. The hearing was finalised on 29 June 2018 and the disciplinary panel of the GGB handed down its preliminary recommendations to the GGB on 31 August 2018. The GGB disciplinary panel recommended to the Gauteng Gambling Board to find Phumelela to have breached Condition 10 of its race meeting license. The Gauteng Gambling Board found Phumelela guilty of contravening condition 10 of its licence conditions. Phumelela was fined R5 million, half of which was suspended for five years.
2. Phumelela has conducted race meetings at Turffontein in breach of section 191 (2) of the Gauteng Gambling Act. After obtaining its licence from the Gauteng Gambling Board, Phumelela failed to conduct itself in a manner which conforms with the Gauteng Gambling Act. The section states that “(2) The rules according to which a race-meeting will be held by the licence holder shall be approved by the board.”
3. On 23 March 2012, the CEO of Phumelela sent an email to the jockey club saying “We hereby formally submit to you that the NHA only has jurisdiction over its members and does not have jurisdiction over Phumelela.” The statement of Phumelela through its email breaches the clear provisions of s92(1) of the Gauteng Gambling Act. Phumelela ceased to conduct itself in a manner which conforms with the GG Act. The section declares that “A race-meeting licence shall be subject to the condition that the holder thereof shall comply with the provisions of the Constitution, rules and regulations of the Jockey Club of Southern Africa……” Section 93 of that Act says Suspension or cancellation of race-meeting licence: -
(1) The board may at any time suspend a race-meeting licence for such period as it may determine; or
(2) may at any time cancel a race-meeting licence if the holder thereof-
(a) has been convicted of an offence which, in the opinion of the board, justifies cancellation;
(b) has contravened or failed to comply with any rule or regulation contemplated in section 91(2)(b); or
(c) has contravened or failed to comply with any condition of such licence”
4. Phumelela has breached its authorisation to hold night meeting races at Turffontein. It has already been found to be in breach of the authorisation. In terms of the authorisation, “All Lamps must be focused to ensure that only the target race course area is illuminated.” We have all seen that this is not the case. Half of Turffontein is illuminated by the lamps.
Enterprise Details
Enterprise Number K2018560704
Enterprise Name NADOMINE
Enterprise Type Private Company
Enterprise Status In Business
Compliance Notice Status NONE
Registration Date 2018-10-25
PHYSICAL ADDRESS:
1974 ALBERTINA SISULU ROAD
HOMESTEAD PARK
JOHANNESBURG
GAUTENG
2092 POSTAL ADDRESS:
P O BOX 42842
FORDSBURG
JOHANNESBURG
GAUTENG
2033
Registered Directors / Members
ID / Passport Number Name(s) Surname Type Status
610514 XXXX 08 X MOHAMED ALLI DAWOOD Director Active
I don't care if it's Nadomine or Pantomine Pty Ltd, I hope they bury Phumelela.
As for the NHA being the unbiased protector of the sport, what a joke !
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Good day Pantomime
I have had numerous problems with the NHR since buying shares in a racehorse way back in 2016.
The experience i have had and still have is no less than shocking!!
There seems to be so many underhand thing going on and it is a total waste of time sorting it out.
My experience up to date is more than upsetting and shocking. Anyone interest in contacting me can do so on 0843205874.......All i can say is tread careful,as many people in my experience feel treatedind to talk in the open....
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