Evidence Mounts in Probe of South African Regulators

Lawmakers in South Africa have found boxes of shredded documents at the offices of the country’s National Gambling Board, which is under investigation in connection with charges of mismanagement and possible illegalities. The entire board was suspended last month.

The plot has thickened around the mystery that has resulted in the recent suspension of all the members of South Africa’s National Gambling Board following the discovery of five boxes of shredded documents at the board’s offices.

The revelation has added fuel to claims of major corruption and maladministration at the body.

Last month, the Trade and Industry minister suspended the board with no explanation, although it was later indicated the move was connected to a questionable 58 million rand lease deal (US$5.2 million), alleged violations of Public Finance Management Act rules relating to overdrafts not approved by the Finance Ministry, and more than 1 million rand in overseas travel.

Several high-ranking staff, including newly appointed CEO Themba Dlamini, quit in the past year, and it later emerged that a whistleblower had made claims of corruption, intimidation and theft of evidence.

The shredded documents were found during an inspection of the board’s offices by lawmakers Dean McPherson and Giordin Hill-Lewis. McPherson said the documents were the minutes of meetings.

The board oversees an industry with gross revenues of in excess of 20 billion rand a year ($1.8 billion). It has a budget of about 30 million rand but reported a net loss of more than 4 million last year.

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