By Paddy Harper

Parliamentarians have ordered the KwaZulu-Natal Gambling Board to come clean on all the amendments that have been made to the social-responsibility pledges of the province’s casino licence-holders.

The move comes in a bid to ensure that casino owners, who earn millions monthly, live up to the public promises made in order to secure their licences.

The hard line from the members of the department of the premier’s portfolio committee was sparked by the latest controversy over the dealings of casino boss Vivian Reddy, a benefactor of axed deputy president Jacob Zuma.

The temporary premises of Reddy’s Monte Vista casino at Newcastle — the old Iscor Sports Club — were sold to the local municipality last month for R15-million, in spite of an earlier promise to donate the site and buildings to the local community.

The province’s gambling board changed the licence conditions, allowing Reddy to sell the premises to the Amajuba District Council. Council bosses are arguing that the figure Reddy was paid was about R4.5-million too much and they are claiming they were pressured into allowing the sale by provincial government.

There is also controversy over which of Reddy’s social-responsibility commitments have, in fact, been met.

He has made public claims of doling out more than R3-million in largesse, but has been unable to provide records. Reddy’s licence states that he is compelled to donate 1% of his casino profits to the Newcastle community, but gambling board records reflect only R433 000 between 1999 and March this year.

Reddy has also come under fire for reneging on a promise to donate more than R10-million to the Curries Fountain Sports Trust in Durban, a promise made during his licence application.

Two weeks ago, Reddy told the Sunday Times that he had not given the project a cent as his promises had hinged on his being the only licence issued in the Durban area. Two were issued.

On Tuesday, Sam Mutheiwana, the general manager for gaming and betting in the office of the premier, presented the portfolio committee with a letter from board acting chief executive Ken Ladbrooke, in an attempt to shed light on the sale.

Ladbrooke said in the letter that because the casino did not “perform as expected”, the owners of the casino had reneged on their initial pledge to lease the premises to the council for R1 a year.

Ladbrooke claimed the board had allowed the changes based on “sound facts and in the best interests of the province”.

However, committee members were far from satisfied and have now demanded that the board make public all changes to licence conditions by casino operators across the province.

Committee chairman Cyril Xaba said it had ordered Ladbrooke to be present at the next committee meeting and wanted full disclosure of changes by all operators, not just Reddy.

“Our problem is that these amendments have never been made public, unlike the original promises, which were well-publicised,” he said.

During the 2006/07 financial year, casinos in KwaZulu-Natal generated more than R196-million in tax revenue to the province, about 10.56% of overall takings.