THURSDAY, 11.30AM
TSOGO Sun’s position as preferred finalist for a casino resort in the Mpumalanga capital of Nelspruit was placed in jeopardy yesterday when rivals Karos Hotels and Esikhehleni won a dramatic high court ruling which will likely delay the establishment of a Nelspruit casino complex for several months.
Karos and its associate Esikhahleni argued in the Nelspruit High Court that the provincial gaming board had not provided sufficient information on which objections could be raised to the proposed granting of a licence. The judge upheld Karos’s case, and ordered Tsogo Sun to make available to Karos all the information requested.
Another effect of the ruling is that it sets a precedent for the type of information that prospective casino operators in other provinces will hae to supply.
Mpumalanga Gaming Board CEO Andre Wilsenach dexcibed the judgment as “good and fair”, but said it is unlikely to lead the board to reverse its decision on the preferred finalist. Karos CEO Selwyn Hurwitz, however, expressed confidence that the additional information will support his court bid to have the board’s decision reveresed on the grounds that Tsogo Sun was selected on erroneous grounds.
BUSINESS BRIEFS
CUSTOMS FORFEITS ABOUT R401-million in customs duty had been forfeited in the last six months of 1996 because the department of customs and excise didn’t have the staff to carry out the minimum of 5% checks, auditor-general Henri Kluever told Parliament on Wednesday.
Kluever also said the public works department began building a R2,063-million prison in Vryburg, when it was discovered that there was a high clay content in the soil and that another R8,5-million was required to reinforce the foundations. The project was abandoned.
PHILLIPS DEAL ‘LEGAL’ THE SA Revenue Services said yesterday that a reported offshore oil exploration between government and American company Phillips is perfectly legal. There had been suggestions that government’s offer to cap future tax on the operation at a 35% ceiling was unlawful. SARS representative Kosie Louw, however, said that in terms of s5 of the Income Tax Act, the mineral and energy affairs minister, with finance ministry approval, has the power to lower the tax payable by international oil companies.
See yesterday’s ZA*NOW report.
CAR EXPORTS SOAR THE Nationalk Association of Automobile Manufacturers of SA yesterday released figures that show new vehicle exports from SA increased 157% in the first quarter of this year. 3 870 units were exported between January and March, compared to 1 502 during the same period last year.