The Wild Coast Sun’s licence renewal application will be considered on Wednesday by the Eastern Cape Gambling and Betting Board. Sun International has submitted a proposal for a R340 million (US$33.5 million) upgrade to the casino resort south of Port Edward on the Indian Ocean. However, King Mpondombini Sigcau has sent a written objection to the company’s application.

According to the Mpondo monarch, Sun International has reneged on financial obligations and pays a minimal rental of R5000 (US$493) a month to the government. Sigcau has asked the Board to investigate the validity of the lease signed 30 years ago with the then Transkei homeland. The establishment of the Mbizana Development Trust, which would benefit the local community, was part of the deal but apparently little funding has been forthcoming.

Questions also have been raised about the group’s black empowerment partners who the amaMpondo clan claim don’t come from the Transkei. Sun International contends that it has contributed R14,692 million (US$1.45 billion) to corporate social projects in the area between 1981 and 2008. Sigcau is insisting that Sun International be required to make a large initial capital donation, in addition to payment of a percentage of profits annually, in order to get the Wild Coast Sun licence renewed. (E-01.26.09)

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