South African Caesar's Shareholders to Fill Gap

SOUTH AFRICA – As reported by the South Africa Business Day: "The remaining shareholders of Caesar's Gauteng Casino are likely to take over the human resources and training function that was a condition of their winning the casino licence after one of the shareholders failed to fulfil this part of the agreement.

"Caesar's Gauteng is owned by Global Resorts East Rand (GRER), which in turn is owned by Global Resorts SA, Marang East Rand and a US shareholder, Caesars Entertainment, formerly Park Place Entertainment.

"Marang has a 25% economic interest in GRER but a 50% voting interest. Marang shareholders are the Mineworkers' Investment Company, with 36%, Women's Development Business with 15%, individual promoters with 9% and local shareholders, including youth and children's trusts, with 25%, and East Rand Joint Ventures (ERJV) with 15%.

"…Global Resorts deputy CEO Anthony Puttergill said the granting of a licence from the Gauteng Gambling Board required GRER to comply with certain commitments, one being human resources training and development of people in the area. ERJV was the vehicle to deliver this.

"Global Resorts and Marang approached the Gauteng Gambling Board for guidance. On its advice a forensic probe was undertaken by accounting firm Gobodo, which verified ERJV's dividend receipts were not used for human resources development and training…"

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