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Presentation to the Portfolio Committee on Trade and Industry on the National Gambling Board. Dr. Rob Davies ,MP Minister of Trade and Industry 13 March 2015. Presentation Outline. Ministerial Legislative Authority Mandate of the NGB Functions of the NGB
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Presentation to the Portfolio Committee on Trade and Industry on the National Gambling Board Dr. Rob Davies ,MP Minister of Trade and Industry 13 March 2015
Presentation Outline Ministerial Legislative Authority Mandate of the NGB Functions of the NGB Sanctioning of the forensic Investigation at NGB Forensic investigation restrictions and limitations Allegations, Findings and Interim Actions by the Administrators Future of the NGB Strategic Focus of the NGB Gambling Industry statistics Policy Review Process and Steps Conclusion 2
Ministerial Legislative Authority The Minister took office in June 2014 and is the Executive Authority to whom the National Gambling Board (“the NGB”) is accountable, both in terms of the relevant provisions of the National Gambling Act, 7 of 2004, as amended (“the NGA”) and the Public Finance Management Act, 1 of 1999, as amended (“the PFMA”).
Mandate of NGB To provide for the co-ordination of concurrent national and provincial legislative competence over matters relating to casinos, racing, gambling and wagering, and to provide for the continued regulation of those matters; for that purpose to establish certain uniform norms and standards applicable to national and provincial regulation and licensing of certain gambling activities; to provide for the creation of additional uniform norms and standards applicable throughout the Republic; to retain the National Gambling Board; to establish the National Gambling Policy Council; to repeal the National Gambling Act, 1996; and to provide for matters incidental thereto.
Functions of NGB As determined in Sections 33 and 65 of the NGA • Evaluating the issuing of national licences by the PLAs; • Compliance monitoring of licensees by the PLAs; • Conducting oversight evaluation of the performance of PLAs in order to ensure that the national norms and standards established by the Act are applied uniformly and consistently throughout South Africa; • Assisting PLAs to ensure that the unlicensed gambling activities are detected; • Monitor market share and market conduct and research; • To establish and maintain national registers; • Conduct Public awareness and Education programmes; • Monitor Socio Economic patterns of Gambling activity within the Republic; • Advise the Minister and the dti on gambling related matters, and • Interact with other foreign or international authorities.
Sanctioning of the forensic investigation at the NGB • During July 2014 the office of the Auditor-General (AG) conducted a statutory audit into the financial affairs, condition of the NGB, and its compliance with all or otherwise with the applicable corporate governance for the financial year ended 31 March 2014. • The Auditor-General reported on several breaches of the PFMA by the Board members, including a failure to prevent irregular or unauthorized expenditure. • Minister was entitled to investigate the allegations, and if necessary, take the requisite steps as contemplated in section 83(4) of the PFMA. • On 19 August 2014 the Minister received a written protected disclosure made to him by an employee of the NGB in terms of section 6 of the Protected Disclosure Act, 2000.
Forensic Investigation Restrictions and limitations • The report contains preliminary review, analysis of documentation, information provided and interviews undertaken to date. • Except in instances where it is deemed necessary and specifically so indicated, the forensic investigators have not verified the authenticity or validity of all the documentation made available to them. • This presentation is thus solely to inform the Portfolio Committee of the preliminary findings, and is subject to limitations. • Management comments to the report are pending and all queries require resolution. • Presentation focuses on systematic issues in general, not allegations relating to individuals.
Future of the NGB • the dti has finalised a draft Gambling Policy Review Document which was tabled at National Gambling Policy Council on 5 September 2014 and 2 March 2015. • Proposals include amendments to reposition the NGB as a Regulator in the gambling industry, not a Board, as its function does not include issuing of licenses like provincial gambling boards. • As a trading entity of the dti, its effectiveness to deal with illegal gambling, problem gambling and research will be enhanced. • The Board as a structure will be removed in line with the decision of the dti to remove Boards in regulatory entities to improve effectiveness.
Strategic Focus of the NGB • The strategic direction and mandate of the NGB will focus on the following aspects: • Oversight function to facilitate policy coherence and coordination between national and provincial • Research and Trend Analysis • Education and Awareness • Combat Illegal Gambling • Problem Gambling and Oversight in respect of National Responsible Gambling Program • Ensure Effective Operation of Central Monitoring System • Norms and Standards • Trends in the industry have been reviewed in finalising policy proposals and future role of NGB
GGR, ALL PROVINCES:FY15 (APR 14 – DEC 14) Source: NGB
GGR: FY13, FY14 & FY15 (Quarter 1, 2 & 3 only) Source: NGB
Policy Review Process and Steps • Policy review proposes that no new forms of gambling should be allowed at this point, and that focus be on enhancing the regulation of the existing modes. • Choices made having regard to contribution to economy, social impact, job creation and capacity to monitor. • A framework for electronic bingos with limitation on number of licenses, sites and seats in bingo halls. Specific improvements in horse racing, limited payout machines and casinos are recommended. • After go ahead by National Gambling Policy Council, the dtiwill consult the public and affected stakeholders, the revised policy proposals and bill will be tabled for approval. • The final draft policy and bill will be processed through Cabinet for introduction into Parliament (National Assembly and the National Council of Provinces as gambling is subject to concurrent jurisdiction). • It is expected that policy and bill will be published for public comments by April 2015.
Conclusion • the dti remains committed to strive to achieve 0% of irregular expenditure and eradicate fruitless and wasteful expenditure. • Optimal oversight desired by the dti is within its reach and can be optimised or achieved through collaboration, interfacing, regular communication between the management so tasked and the NGB. • the dti will assess final findings and recommendations and ensure implementation of measures to prevent irregularities.
