The preliminary findings of a forensic investigation into the affairs of the National Gambling Board (NGB) have amongst others revealed the irregular expenditure of more than R3.6 million and fruitless and wasteful expenditure of more than R66 000. A law firm was irregularly appointed at a cost of over R2.2 million and the contract had to be cancelled.
This was announced by the Minister of Trade and Industry, Dr Rob Davies during briefing to the Portfolio Committee on Trade and Industry in Cape Town.
The forensic investigation also revealed that the NGB did not have a bank overdraft even though the bank allowed it to use the facility several times. Davies said that the office space of the National Gambling Board is more than double of the required office space.
Minister Davies commissioned the forensic investigation late last year following the Auditor-General (AG) irregular findings against the NGB and the Board members. He told the Portfolio Committee that the findings are not yet final as those implicated still need to be given a chance to commend on the preliminary findings of the forensic report. Board members resigned on 25 November last through their legal representative after being temporarily removed by Minister Davies.
Davies also emphasised that online-gambling in South Africa is illegal and those involved in such activities will face the might of the law.
“Anyone operating illegally under the presumption that eventually they will be legalised ought to understand that they will not get a licence for this. South Africans participating on online gambling have no defence or recourse if they get rip-off. We are also talking to institutions that are dealing with money laundering to ensure that banks are not processing such transaction,” said Minister
Committee members who were present, with exception of Democratic Alliance welcomed Minister Davies preliminary findings of a forensic investigation and agreed that online gambling should not be legalised. ANC Committee member, Priscilla Tozama Mantashe questioned the motives of those who support online gambling.
“When someone would support online gambling you wonder whose interest is the person promoting. A person who is serving the poor people will not support online. The majority of our people especially the poor do not understand online gambling,” Mantashe.
Members called on the department of Trade and Industry to educate the public about the dangers and the risks of online gambling.
Enquiries:
Sidwell Medupe
Tel: 012 394 1650
Cell: 079 492 1774
E-mail: MSMedupe@thedti.gov.za
