Limpopo Gambling Board Annual Report

LIMPOPO GAMBLING BOARD Annual Financial Statements for the year ended 31 March 2022 Notes to the Annual Financial Statements

2022

2021

27. Contingencies Litigation is in the process against the entity relating to the following cases: NEHAWU, OBO KGAME, SAMUEL AND 38 OTHERS // LIMPOPO GAMBLING BOARD

The issue relates to the interpretation or application of a “collective agreement”, which is linked to the 2020-2021 salary adjustment for employees of the entity. The arbitration proceedings commenced at the CCMA on 23 March 2022. After hearing the preliminary points by the Applicant and the Respondent, the Commissioner directed that both parties file their heads of argument before 30 March 2022. In its ruling dated 6 April 2022, the Commissioner upheld the point in limine and ruled that there was no collective agreement in place, hence the issue of whether or not the Respondent reneged from applying the collective agreement “falls off”. In terms of the ruling, it is submitted that the entity will not be liable to pay the 2020-2021 salary increments for employees in terms of the demands. The entity was represented by the State Attorney and all legal costs in the matter have also been settled. ACAPULCO TRADE AND INVEST+ 123 (PTY) LIMITED An application was brought seeking a mandament van spolie to declare a search warrant applied for and executed by members of the South African Police Service as invalid. The entity is cited as the fourth respondent on account of members of the entity’s law enforcement business unit being present during the search and seizure operation. The Applicant has not applied for a hearing date and there has been no movement of the matter since then. The entity is duly represented by the State Attorney. As at the end of the financial year, no confirmation from the legal representative regarding the contingent liabilities/assets for the period under review was received. However, it was previously stated by the State Attorney that “should the Entity be unsuccessful, the anticipated financial liability of the Entity will be R200 000 (Two hundred thousand rands). If successful, the Entity will be entitled to legal costs which is estimated at R150 000 (One hundred and fifty thousand rands).” LABOUR CASE: MR. S. MAAHLO The above employee was dismissed after an internal disciplinary enquiry was held on misconduct charges. The employee then referred the matter to the CCMA seeking re-instatement on the basis of an unfair dismissal. The Commissioner found that the dismissal was fair and dismissed the applicant’s/employee’s case. The employee thereafter took the matter on appeal in the Labour Court. On the date of the hearing, the matter could not proceed as the judge recused himself from the proceedings. A new hearing date is being awaited. At the time of writing, no confirmation from the legal representative regarding the contingent liabilities/assets for the period under review was received. However, it was previously stated by the Board’s legal representative that he considered the success of the action against the Board as being as unlikely and it was not anticipated that the entity would pay anything more than legal fees. The legal fees associated with the case were estimated at R400 000-00. ADV. M.J. MANTSHO The above candidate was an unsuccessful in his application for the position of company secretary. On 08 June 2021, the entity received a notice of motion wherein the Applicant claimed R20million “for damage to his name, trauma and shock, damage to his integrity and dignity, damage to his confidence and ability to apply for other posts, ability to honour interviews invitations or apply for posts at all.” The entity is represented by the State Attorney who duly opposed the claim by filing a Notice to Defend . The Applicant had not responded further.

49

159