Ann Eveleth
Minority Front leader Amichand Rajbansi has called for punitive legislation to prevent Inkatha’s KwaZulu-Natal finance MEC Senzele Mhlungu’s gambling interests benefiting from provincial legislation drafted by his department.
Mhlungu’s recent announcement that he would quit his post in late August coincided with the adoption of provincial gaming legislation to end the mushrooming of unlicenced casino operators in the province.
Rajbansi believes the legislation, under which existing operators will be forced to close in the next three months, will benefit large consortiums – — including one in which Mhlungu has an interest – — bidding for the province’s five casino licences.
“The draconian measures tabled by Mhlungu’s department lay the rules in favour of the big boys,” said Rajbansi, who said he intends intoducing legislation which would prevent any minister involved in drafting gaming legislation from applying for a casino licence for three years after they resign.
Mhlungu is the largest shareholder in Khulani Holdings, which last October launched a gaming consortium — African Sun International (ASI) — together with Sun International, Thebe Investments, Real Africa Investments, Vela International, Women’s Investment Portfolio and Gestilac. Although Mhlungu resigned as director of Khulani Holdings — which he started in 1978 — when he took office in April 1994, he still owns 1 190 310 shares, at an estimated value of over R100 000.
Mhlungu’s administrative secretary Shaun Emslie confirmed the MEC’s continued interests in the consortium, but denied these would benefit from his role in drafting legislation on the gaming industry: “I think the process outlined in the legislation would prevent any favouritism in the granting of licences. I don’t think there has been any conflict at this stage, although if he stayed on until the licences are granted there could be,” said Emslie.