South African minister explains Gambling Board suspension

South Africa’s trade and industry minister Rob Davies has said allegations of maladministration, wasteful spending and corrupt activities are behind the suspension of the country’s National Gambling Board (NGB).

Davies responded to calls from parliamentary committee chairwoman Joan Fubbs last week and provided a written submission on Friday that also revealed the board had contravened the country’s National Gambling Act.

Labelling the suspensions as “precautionary”, Davies said he had responded to concerns raised by the country’s auditor-general after the board submitted its 2013-14 annual accounts.

The auditor-general highlighted areas of spending that he considered had contravened South Africa’s Public Finance Management Act by “failing to prevent irregular, fruitless and wasteful expenditure”.

Contraventions of the Gambling Act stem from the board allegedly allowing officials whose terms in office had expired to continue to participate in its activities and represent the NGB.

The regulator was suspended last month pending a “forensic investigation” to be carried out by South Africa’s Department of Trade and Industry (DTI) but specific reasons had not been disclosed.

South Africa’s Democratic Alliance has responded by confirming it will push for full disclosure of the results of an ongoing investigation into the NGB’s activities and criminal charges against any board member found to have acted unlawfully.