1. PRESENTATION TO the STANDING COMMITTEE ON FINANCE (SCOF) 04 may 2018

2. WCGRB OFFICE ACCOMMODATION and KENILWORTH RACING LEVY

3. Agenda WCGRB New Office Accommodation.
WCGRB Seafare House Accommodation Repairs.
Kenilworth Racing Levy

4. WCGRB New Office Accommodation
Minister for Finance, Dr. IH Meyer approved a budget of R3,1m for 2018/2019 financial year to finance the rental accommodation.
The special fund in excess of R10m, created by PT to assist with permanent accommodation of the Board, has as yet not been utilised.
WCGRB, DTPW and PT worked together to facilitate the accommodation tender requirements:
Office specifications was finalised and sign-off by WCGRB – 02 March 2018.
Advertisement was finalised and sign-off by WCGRB – 06 March 2018.
WCGRB office space requirement is 1926 m2 and secure parking for at least 50 vehicles.
Lease period is for 3 years with an option to renew for a further 2 years.
Office location requested is for the Northern Suburbs.
Advertisement published in classified sections of the following newspapers:
Cape Argus – 23 March 2018
Die Burger – 23 March 2018
Vukani – 29 March 2018
Tender was published on government tender bulletin – 06 April 2018.
Initial closing date was 03 May 2018, extended to 10 May 2018 due to late publication on tender bulletin.
Request to DTPW:
WCGRB to form part of the tender process – was agreed by DTPW.
What the process will be after 10 May 2018 closing date – still awaiting feedback.
Specification committee
Evaluation committee
Adjudication committee

5. WCGRB Seafare House Accommodation Repairs
WCGRB, DTPW and PT worked together to prioritise repairs to existing building.
DTPW contracted inspectors to evaluate the building repairs and maintenance during March 2018.
Contracted inspectors produced a report for DTPW on the repairs and maintenance.
DTPW Architect currently verifying all repair and maintenance requirements of building since 26 April 2018.
DTPW Architect to produce report for submission to Heritage Council for approval - 04 May 2018.
DTPW to advise WCGRB on the process after the submission of report to Heritage Council.
DTPW to provide WCGRB the required spend for repairs and maintenance to existing building.

6. Kenilworth Racing Levy
WCGRB’s collects betting levy then distribute to Kenilworth Racing
BACKGROUND:
Industry has been in dire financial straits in excess of 15 years
At the time - run by the Western Province Racing Club (Club)
Numerous requests to extend relief to the club bearing in mind the direct and indirect employment
Discussions were held between Finance MEC in Western Cape and KZN
Proposal and recommendation was that half the taxes collected from bookmakers be paid to the Club
At the same time, tax payable by the Club was proposed to be reduced to 6% from 6.5%
Effectively, the Club is in a net tax receivable position with such a proposal
Both proposals were approved and effected through publication in Government Gazette
Board would collects the betting levy and pay over to the Club, now Kenilworth Racing (“KR”)
Regulations also placed obligations and duties on KR upon receipt of such levy, in that no portion of the levy may be allocated for:
Day to day administration costs
Costs incurred in respect of the Jockey Club
Costs relating to the licence application or renewal thereof
Refinancing any part of the business

7. Kenilworth Racing Levy cont.
KR to submit quarterly reports to the Board
The Board conducts both desktop audits as well as on site audits
Legislation prescribes what is considered to be development expenditure for the industry, which includes stakes payable and upgrading of facilities
Stakes is defined as the prizemoney paid to race horse owners
KR must spend at least 25% of the betting levy on stakes, however given the current climate in the industry, KR has been spending 100% of the betting levy on stakes
Audits are conducted to ensure compliance
No audit findings to suggest any improper expenditure to date of this betting levy.
The amount of betting levy for the 2016/2017 financial year was R18,6m, which full amount was utilised to enhance the stakes offered.

8. Mr. David Lakay – Chairperson