ASSOCIATION OF GERMAN SPEAKING COMPANIES IN SOUTHERN AFRICA

Re: National Gambling Amendment Bill : 43 of 1999

It is with great interest that we followed the granting of the casino licences in the nine provinces of the Republic of South Africa. This is important to us, as a major Trade Association, because of its possible influence on inner city development, tourism and also future foreign investment.

We are aware of the Public Hearing in regard of the amendment of section 13 of Act 33 of 1996 as amended by section 1 of Act 36 of 1999, which will take place on Monday, 13^th September 1999.

Please allow us, to express our concern regarding such amendment, which is based on two factors:

- An amendment as proposed would benefit only companies in Government private partnership amongst the various national and international bid companies. The amendment would change retroactively conditions, which were binding for all competitors for the various casino licences, thus giving certain companies an advantage over all those companies, which fulfilled the prerequisites for applications for casino licences as formulated in the original act.

- The retroactive amendment could set signs, which might have an undesirable negative influence on the decision process of foreign investors, considering investment in South Africa, as it could set a precedent for changing an economical environment by means of legislative intervention to the disadvantage of foreign competitors.

The large German speaking business community in South Africa, which today forms an integral part of the economy of South Africa, sees it also in their best interest, to attract further foreign investment to this country. On the occasion of his State Visit to the Republic of South Africa the then President of the Federal Republic of Germany, Professor Dr. Roman Herzog, addressed both Houses of the South African Parliament. In his address he emphasized, that any foreign investor expects in the country, in which he plans to invest, safety for his management, staff, and in his investment, as well as a favourable economical climate. It is in this respect that we are concerned regarding the amendment under discussion.

Association of German Speaking Companies In Southern Africa (VDU)

Horst K.W. Jaeckel

Chief Executive