Monday, March 1, 1999 | 11:28 a.m.
Accusations by a minority party member of the Gauteng Provincial Legislature that a payment was made to a government official involved in a casino development there were not directed at MGM Grand Inc.
The Sun reported Thursday that a State Gaming Control Board official had said a member of a two-person minority party alleged on the floor of the South African parliament that someone had paid 1 million rand to the minister of finance to approve the Tsogo Sun-MGM Grand joint venture's licence application.
The allegations were made in the provincial legislature and involved a member of the executive committee for finance, a post similar to that of the Nevada treasurer.
MGM Grand Chairman Terry Lanni said today the accusations were directed at Tsogo Sun Entertainment, not MGM Grand, and involved an alleged payment made in the request-for-proposal process, not licensing.
"There were absolutely no allegations of impropriety directed at MGM Grand," which has been approved to manage the casino developed by Tsogo Sun, Lanni said.
The parliament member has immunity from false statements made as a sitting member of the Legislature, but has not repeated the allegations, Lanni said.
At current exchange rates, 1 million rand equals about $161,000.
Lanni said Tsogo Sun is a joint venture between Southern Sun Plc, a wholly owned subsidiary of South African Breweries, and a group of black South African business and labor leaders. South African Breweries, which is a candidate for listing on the London Stock Exchange, is contemplating a defamation lawsuit against the legislator.
Lanni said auditors from PriceWaterHouse, the accounting firm for South African Breweries, are reviewing the request-for-proposal process, which didn't involve MGM Grand.
The South African government has offered a 250,000 rand reward to anyone who can provide information substantiating the claim. So far, there has been no response.
"We have every reason to believe our partners, Tsogo Sun Entertainment, will be fully vindicated of these charges," Lanni said.
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