Question NW723 to the Minister of Trade and Industry

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17 March 2016 - NW723

Profile picture: Holomisa, Dr BH

Holomisa, Dr BH to ask the Minister of Trade and Industry

(1)Whether, with reference to the activities of the original owners of the Gold Reef City Casino Gambling Licence and the Gauteng Gambling Board (GGB), the Registrar of Companies and the National Lotteries Commission, NLC, formerly known as National Lotteries Board, NLB, a certain person (name furnished), submitted all the documents, including the certificate of incorporation of the SA Apartheid Museum, in terms of the statutory requirements of the National Lotteries Board, if not, why not; if so, who were the directors of the SA Apartheid Museum, inspected and passed by the National Lotteries Board; (2) does Parliament have a copy of the entire incorporation file of the SA Apartheid Museum including the obligatory CM5, Name Reservation Form, with regard to The Registrar of Companies mentioned in the opening paragraph; (3) (a) whether, with regard to the Gauteng Gambling Board, (GGB) the principal financiers behind the Gold Reef City casino licence project were the twin brothers (names furnished) and (b) whether the specified persons also funded the Youth Investment Network company belonging to a certain person (name furnished); (4) whether the specified owner of the company was an employee of the GGB before and/or during the period that, through the Youth Investment Network, he was a person with financial interest in the application for the Gold Reef City casino licence; if so, what position did the specified person hold at the GGB and the relevant dates of his employment with reference to the applicable GGB human resources policy at the time and in respect of issues related to conflict of interest?

Reply:

1. According to the information received from the NLC, the SA Apartheid Museum, in support of its applications supplied all the required information viz.:

i. Prescribed application form, duly completed.

ii. Project plan and motivation for said project.

iii. Project budget.

iv. Notice of registered office to show registration number.

v. Articles of Association of a Company not having a share capital.

vi. Memorandum of Association of a company not having share capital.

vii. Annual financial statements for three consecutive years.

According to the information received from the NLC, the signatories to the Articles of Association were:

i. Kim Feinberg

ii. Steven Joffe

iii. Christopher Kroese

iv. Solomon Krok

v. Christopher Martin Till

vi. Richard Thabo Moloko

vii. Lesego Wa Lesego

viii. Sidney Abromowitch

2. Yes, please see “Annex A” attached hereto. “Annex B” contains further information regarding changes of directors at SA Apartheid Museum. This information was provided for by the Companies and Intellectual Property Commission (CIPC).

3. (a) According to the information received from the NGB, the casino was funded 60% debt (R497.4m) and 40% equity (R344.9m). Equity contribution was as follows:

i) Akani Leisure R172.45m

ii) M Krok R73.29m

iii) MZ Krok R73.29m

iv)Promoters R25.87m

According to the information received from the NLC, the shareholders of Akani Leisure were as follows:

  • Co-ordinated Network Investments
  • Siphumelele Investments
  • Black Management Forum Invetment
  • Youth Investments Network
  • G7 Investments Holdings
  • Xau Women’s Investment
  • Prime Portfolio Investments A

The shareholders of the promoters were as follows:

  • The Kroks (Maxim and Martin Zane Krok who are the sons of Solly and Abe Krok)
  • Casinos GmbH
  • Murray & Roberts Construction
  • Innovative Resort
  • First Corp Merchant Bank
  • Co-ordinated Network Investments

(b) Youth Investment Network was established and financially assited by Akani Leisure and the Promoters to create an opportunity for the youth to participate in casino licence applications throughout the country. Once it was established, it was offered a shareholding in Akani Leisure.

The shareholders of Akani Leisure were as follows:

  • Co-ordinated Network Investments
  • Siphumelele Investments
  • Black Management Forum Invetment
  • Youth Investments Network
  • G7 Investments Holdings
  • Xau Women’s Investment
  • Prime Portfolio Investments A

According to the response received from the NGB, none of the members of the Youth Investment Network were employees of the Gauteng Gambling Board.

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