ZONWABISE RESORT HOLDINGS

THE NATIONAL GAMBLING BILL, 2003
As you may know, Zonwabise is the Eastern Cape's leading empowerment vehicle in the
province’s tourism, leisure and gaming industry.

To our dismay, we have only recently been informed of a new Bill going before parliament which will substantially impact on the interests of our shareholders and the constituency we represent in this province. It concerns us greatly that there appears to have been virtually no consultation in respect of the new legislation.

But more importantly, we understand that the new legislation contains a number of measures which will undermine the many successes we have achieved here in terms of black economic empowerment.

'With the development of The Boardwalk Casino & Entertainment World in Port Elizabeth, opportunities have been created, perhaps for the first time, for the disadvantaged people of this city to meaningfully participate in the tourism and leisure sector. Aside from the equity which has been made available in Emfuleni Resorts, previously disadvantaged business people have benefited from the implementation of the wide-ranging Targeted Access Programme (TAP), a body of protocols which lays down the system and targets by which the emerging sector receives preference in terms of sub-contracting, supplier relationships, and outsourcing.

It appears that success stories such as this were not known to those involved in preparing the new legislation.

It seems to us that in this process there has been not only insufficient consultation, but inadequate research into the industry. We believe that your committee Chairman, should require that the Department which developed the Bill to re-visit those issues which will disadvantage black shareholders, workers and SME’s, or at least, to take the time and the trouble to consult those who will be affected.

We are not able to travel from Port Elizabeth to give evidence to your committee, but I trust that your colleagues and yourself will be sensitive to our very grave reservations about this new Bill, not least of which the apparent haste with which it is being rushed through parliament.