SUNWEST AND GRAND PARADE INVESTMENTS

STATEMENT BY MR HASSEN ADAMS, DEPUTY CHAIRPERSON OF

SUNWEST INTERNATIONAL AND GRAND PARADE INVESTMENTS

AT THE JOINT PORTFOLIO COMMITTEE FOR TRADE AND INDUSTRY

HEARING ON THE NATIONAL GAMBLING AMENDMENT BILL

13 SEPTEMBER 1999

I represent SunWest, the successful and preferred bidder of the Cape Metropolitan Casino. I also represent the empowerment company, Grand Parade Investments, who together with another national empowerment company, AfriLeisure, owns 51% in Sunwest. In the Western Cape alone, we represent, close to 20 000 individual shareholders. SunWest has already demonstrated its commitment to the Western Cape through its highly successful International Table Bay Hotel. SunWest has an ongoing commitment to the development of the region and its people.

We decided to enter into this debate quite late, and I therefore thank the judicial managers for the opportunity to address this committee during their allocated time-slot.

Let me place on record that we have no intention of questioning the integrity of our Cabinet Ministers and Government for introducing this amendment to the bill. We believe that Government is taking the necessary and responsible decision to protect the taxpayers interest by extending the deadline of the government's equity stake in Sun International SA. This will allow the Government to transact under more favorable conditions and hence maximize the income to the state.

We are rather confused by representations being made to this committee by our unsuccessful competitors here today. It is public knowledge that we have won this bid on merit, and by a unanimous decision by the Western Cape Gaming Board. The result of their findings showed that our bid represented the best of the five bids for the Metro.

I wish to emphasize that this forum needs to deal with the issues leading to the change of legislation required for disposing of government assets in an accountable and transparent way. It is not here to deal with Western Cape Casino process nor to give audience to the casino competitors' discord.

We have already seen that our competitors have abused tax-payers money by forcing state funded investigations to further their unfounded allegations. QSEO have cleared SunWest of all these allegations and one wonders who is now accountable and responsible for the R600-million lost to this Province because of the delays.

The tactics used by our competitors are questionable and smack of vested interests by a few influential individuals. The American Chamber of Commerce has publicly demonstrated their support for the Culemborg bid through their association with its American shareholder, Ogden, and so has the unofficial German Business Council through its association with, and support of the Akani bid.

The question I would like to ask: Are we expected, after a history of struggle, and commitment to democratic and transparent governance in our country, to now waive our tender procedures and principles because of foreign pressure and vested interests?

It would be naive to think that the government of the United States, in a similar position, would be prepared to suffer a massive financial loss simply because of a self-imposed deadline that needed to be extended in the interest of all its citizens, rather than the interest of a handful of South African individuals and their quasi-South African companies who might be prejudiced.

Following a meeting in January this year, between the Premier of the North West Province and his Minister of Finance with national cabinet ministers, Erwin and Manuel and the Director General of Finance, Maria Ramos, it was agreed that the North West Province would not dispose of its shares in the North West Development Corporation, without the approval of the National Government.

Shortly thereafter, Minister Erwin proposed, and fast tracked an amendment to the existing legislation, to extend the deadline for the holding of financial interest by the state in Gambling activities, to the 10th May 2003.

Mr Chairman, members of the committee, significantly, at that time, not a single protest nor any representation whatsoever was heard from any Casino Bidder, American Chamber of Commerce or the German Business Council, or indeed any retired ambassadors.

This legislation passed through parliament in less than two weeks, since it was seen to be protecting the government from suffering unnecessary financial loss of approximately 1 billion rand, should it have been forced into a fire sale of these assets.

The passing of this new amendment bill will not raise any new principles, nor will it disadvantage any losing competitor in the licensing process and at the same time will not advantage the winner at the cost of any competitor.

Most importantly, it will not in any way, impact on a perception of good and honest governance as a concern expressed by the American Chamber of Commerce.

Mr Chairman, members of the committee, the amendment is a simple correction of a minor technical drafting error in the previous amendment act, which might have failed to interpret the intent of the legislator at the time.

It is therefore incumbent on the honorable members of this committee to be watchful of vested interest and intimidation. I would beg of this committee to act responsibly in protecting the government assets.

Finally, the concern placed before you by our competitors is certainly not one of process or principle but rather one of personal profit by a few individuals.