By Eddie Botha
A local community on the Wild Coast stands to earn R150 million over the next 10 years through its shareholding in global hotel group Sun International, which had its Wild Coast Sun casino licence renewed.
However, a spokesperson for amaMpondo King Mpondombini Sigcau said on Sunday the monarch had not given up contesting the validity of SI’s licence despite efforts by the Eastern Cape Gaming and Betting Board (ECGBB) to settle the dispute.
Details of the windfall for the Mbizana community were announced at a function at the Wild Coast Sun on Wednesday when ECGBB chairman Sipho Majombozi publicly awarded SI another 10-year casino licence.
It was thought that the renewed licence had brought an end to earlier objections raised by the amaMpondo monarch’s dispute over a lease signed between SI and the former Transkei homeland government almost 30 years ago.
Speaking at the function Majombozi said the objections by the king had been addressed with the monarch.
SI chief executive David Coutts-Trotter earlier said a lot of the hotel group’s money would be channelled through a development trust, in which the Mbizana community would have a 30 percent stake.
“Over the next 10 years this will generate a vast cash flow for community projects,” he said.
Coutts-Trotter said dividends to the Mbizana Development Trust, registered in 2004, had been used to pay for the community’s shares.
“The 30 percent owned by the community has not cost them anything.”
He said it was estimated the shares would be repaid by 2012, from which date the community would benefit from the dividends.
He said SI would also spend another R340m on refurbishing the Wild Coast Sun.
This did not satisfy the king, said royal household spokesperson, Gordon Ball, who is related to the king.
“The grievances of the king and the nation have not been resolved.
“We met with the board last week and they promised to get back to us, but they never had the courtesy to do so. You are the first to tell us that the licence has been given to SI.”
Ball said as far as the king, who has denied any involvement with the Mbizana Development Trust, was concerned the present licence expired at the end of this month.
“We have until then to object. The king will now seek legal advice,” he said.
At the same time another community, who claims their relatives had been forcefully removed in 1979 by the then Transkei government to make way for the casino development, now wants Pretoria to restore their land rights.
Elias Ogle, chairman of the Khimbili Trust, which represents 103 community members, said their land claim, which had been lodged in 1994, had been gazetted in 1996.
“We expected government to act soon,” said Ogle.
He said the community wanted SI to lease the land on which the casino, hotel and golf course was built back from the community at a market-related rental.
“The unused land we want to use for community projects,” he added. “However the land claim by the Khimbili Trust is out of SI’s hands,” he said.
“The matter is outstanding and still unresolved.
"The (gambling) board and we are committed to a resolution. This is a complex issue but government is the principal player.”
Majombozi said legislation did not allow the board to deal with the land claim issue.
Source: Daily Dispatch
Publisher: I-Net Bridge
Source: I-Net Bridge

