The Shocking BBR Story...

My stand here is

P are very shortly gonna run into cash flow issues. Just gonna happen.

Trainers service providers etc will be effected by the VAT audit under way.

Many guys are gonna settle up old VAT accounts instead of buying new horses.

Generally the big Players as mt valor calls them are the monkeys in the trees.

Double VAT is Gonna catch many people.

VAT and horsies as a whole from a tax perspective was under review before this mess.

I dont blame any one person but P and RA should be far more vocal and involved in administration than they are of SA racing.

The cookie is definitely crumbling mr Valor.

RA COULD SAVE THIS BUT WONT?????

Racing will continue, how else will me move money out of the country?

I have a stallion in the USA or EU (mule bought at a farm for $100).
My studfarm in RSA now buys this stallion from my company in the USA or EU.....for $2,000,000
My bank/the reserve bank transfers the $2,000,000 and I receive my stallion.
the groom takes it to work his lands...


now add some insurance scam to it and we all make money...
you did not know this...
how many horses are injured (????????) in transit?

STOP

Picking on Mr Valiant , he is correct in his statement. This is a game ONLY for BIG players and wealthy international owners some of which recruited by Racing SA over a couple of boerewors rolls at Newmarket and some recruited with our value for money bloodstock.

the rest of us that own the MAJORITY of horses in SA , you know the week in week out stuff, you know the REAL product that provides betting opportunity , we must SHUT up. We should NOT be in the game. UNLESS you spending millions you not got a voice. Even if the millions come from a pyramid scheme......

saksy, you sure hit the nail on the head. Couldn't have said it better myself. BBR virtually had the monopoly in import / export of horses, Connely basically had the rest.
THAT IS WHY COMPETITION IS GOOD........... CAN YOU IMAGINE ONE S.A.A. ONLY TO SERVE S.A. ? SHUDDER !

I have run a small freight Clearing Forwarding business Import / Export for the past 20 years. We the clearing agent pay to SARS the applicable VAT & DUTY on the importers behalf, for all imports into R.S.A.
Should the clearing agent default in payment.... unfortunately the IMPORTER has to pay AGAIN to SARS( correctly this time ) This seems bloody unfair but this is how SARS works.

How this scam passed by some of the big guns is beyond me.
For every Import my client gets My invoice, customs vat/duty bill of entry ( stating exactly how much has been paid for that particular import ) customs release docs.

By all accounts it seems like BBR were paying over to SARS ( if at all ) xyz in VAT, BUT BILLING THE CLIENT XXYYZZ & the rest. For how long had this practice being going on ?.......... & it hasn't been picked up till now.........all these horsie importers must have been wearing BLINKERS the whole time.

TOOO much trust I'm afraid & TOOO much MONOPOLY, afterall there wasn't 6 other agents that were importing / exporting horses..... a niche market it is.

if one of you computer wizards could post peter gibsons reply on racing south africa website it would be appreciated...sorry but im clueless with computers

RACING SOUTH AFRICA RESPONSE TO BBR SHIPPING ALLEGATIONS



In order to properly convey the facts surrounding Brian Roux’s allegation that Racing South Africa was guilty of performing “criminally uncompetitive actions”, it is necessary to provide some background into shipping horses from Cape Town.



A portion of the Mother City was declared South Africa’s African horse sickness (AHS) free zone when the export protocol was ratified by the European Union in 1997, with all shipments required to depart from Cape Town International Airport. Johannesburg, however, is South Africa’s logistical hub with all scheduled freighters operating out of Oliver Tambo International Airport (ORT). This meant that aircraft had to be positioned into Cape Town to collect the export horses on a part or full charter basis before continuing on their journey, mostly to Europe. Control of the charter, therefore, determined who set the price and consequently who could access space on the flight, the latter indirectly impacting how bookings were managed at Kenilworth Quarantine Station, South Africa’s official pre-export quarantine station.



On the other hand, had South Africa been permitted to export horses from Johannesburg, shipping agents would have been able to book freight space directly with any number of scheduled freighters operating on a daily basis from ORT to various parts of the world. Agents, therefore, compete on the basis of service and price or, in other words on a level playing field as they do when importing horses to Johannesburg.



In early 2008 when Racing South Africa elected to offer clients of Kenilworth Quarantine Station a transport solution in addition to quarantine services already provided, only two shipping agents had ever previously exported horses from South Africa, namely Brian Roux (BBR Shipping) and Kevin Connolly (CTB Forwarding). This was, however, not through a lack of trying by other agents wishing to export horses and to explain it simplistically: whilst Racing South Africa would accept bookings at Kenilworth Quarantine Station from all agents, when it came to buying space on the BBR/CTB controlled charter, they would be offered it at the retail value rendering them uncompetitive. This left them with three choices: penalize their client, operate at a loss or hand over the client to either of BBR or CTB, this being a monopolistic scenario if ever there was one, the irony of which will be revealed later on.



By chartering its own flight, Racing South Africa acted as airline broker and, therefore, effectively replicated the operating conditions shipping agents would encounter if we were able to export from Johannesburg (and do encounter when importing horses to Johannesburg). Racing South Africa’s policy, is that all shipping agents were then offered space at Kenilworth Quarantine Station on a first come first serve basis (at the published fee) and consequently freight space on the Racing South Africa Charter. In other words, for the first time since the protocol was developed (in 1997), the playing field was level and all agents were able to fairly compete for a share of the horse export market. The truth of the matter is that when horse exporters were offered an alternative to BBR or CTB they departed in their droves!



In order to limit the financial impact on the shipping agents’ businesses, Racing South Africa elected not to mark up the flight, offering the agents freight space at cost. We stood by this commitment until November 2008 when legally challenged by CTB and BBR in a joint action against Racing South Africa on the basis of uncompetitive practices.





Ironically, if Racing South Africa’s decision to charter flights was acting against the shipping agents, then Candice Hobday of Hobday Equestrian Enterprises (the agent most affected by the BBR/CTB monopoly) should logically have been invited by the BBR/CTB alliance to join them in this action against Racing South Africa. Ms Hobday was not invited, rather accused of being Racing South Africa’s puppet! Additionally, the fact that BBR/CTB did not take the matter further once Racing South Africa’s attorneys, Bell Dewar Hall, had responded to their initial allegations it can only be concluded that there was never any case against Racing South Africa.



The outcome of Racing South Africa’s intervention into the shipping business was not limited to the introduction of competition to the shipping agency environment, but also set out to achieve the following:

1. To stabilize and reduce delivery costs over the long term.

2. To move towards a more modern horse transport solution using long range freighters (B747-400) with the secure and safer jet stalls (rather than using open stalls on the ageing DC8’s, the preferred operating system of BBR) – see pictures attached.

3. To generally improve the reliability and standard of delivery of South African horses to our trading partners by introducing long term planning for our exports and well considered standard operating procedures from start of pre-export quarantine to arrival in Europe in a professional and transparent basis.



On Thursday, 2 September 2010, Racing South Africa successfully concluded its 10th charter when 29 horses departed on KLM/Air France B747-400 for Amsterdam.



This year Racing South Africa has received and accommodated bookings for the following agents: BBR (16); CTB (49); HEE (46). On occasion, Racing South Africa has been requested to provide a total delivery solution as was the case with the Basil Marcus shipment to Singapore and various exports on behalf of the Hong Kong Jockey Club.



Unlike the vile attacks on Racing South Africa, much of which has been of a personal nature directed at myself, we have steadfastly maintained a professional stance, stating only the facts and leaving out any reference to the individuals themselves.



This is the end of an era and as reported by Alec Hogg, new players will fill the breach left by BBR Shipping and a new system will emerge based on transparency and professionalism for the greater benefit of South African horse exports, not just the personal enrichment of a selected few.



In conclusion, Racing South Africa will continue to serve the best interests of South African Thoroughbred Horseracing, its Stake Holders and horse exporters in general.



PETER GIBSON

CEO

4 September 2010

by all accounts it seems like COMPETITION has brought BBR to its demise. MONOPOLY is a great thing ( as long as YOU have the monopoly )

" food and driving fast on a race track are my stress busters) was the same as any alcoholic in not recognizing that I had a problem, a serious cash flow problem and a lack of suitable accounting or financial skills "

This quote above from BBR.... Brian pull the other leg, how after 30 years in a successfull business can you say " you had a lack of suitable accounting or financial skills ". You lasted 30 years, you didn't JUST SURVIVE, you drove fast & expensive cars, wined & dined with the best, rubbed shoulders with the rich and famous, travelled abroad continuously....... GREED IS WHAT BROUGHT YOU DOWN, & COMPETITION, which was LONG OVERDUE.

Shayne Welman Wrote:

---

> My stand here is
>
> P are very shortly gonna run into cash flow
> issues. Just gonna happen.
>
> Trainers service providers etc will be effected by
> the VAT audit under way.
>
> Many guys are gonna settle up old VAT accounts
> instead of buying new horses.
>
> Generally the big Players as mt valor calls them
> are the monkeys in the trees.
>
> Double VAT is Gonna catch many people.
>
> VAT and horsies as a whole from a tax perspective
> was under review before this mess.
>
> I dont blame any one person but P and RA should be
> far more vocal and involved in administration than
> they are of SA racing.
>
> The cookie is definitely crumbling mr Valor.
>
> RA COULD SAVE THIS BUT WONT?????

I don't understand your post. I have been affected by the double vat payment, but I have absolutely nothing to do with P or RA. How should they "save this", and more interestingly, why?

And why would I want them 'more' involved in administration, if at all?

Why argue about SARS not getting money.
learn how to do your own books.
buy Pastel, Brillant or Quick books.
start doing your own accounting...
then I will teach you how to legally steal from SARS.
surely you guys have seen big corporations issuing a warning statement that could affect the share price.....look for the line ...CHANGE IN ACCOUNTING PRINCIPALS..

legally you should not pay more than 3% company tax to SARS on your turnover...and max 6.6% VAT (because of input an output vat)
if you do..change your accountant and start doing your books yourself..

Dash not so clear i suppose.

RA have a 34% stake in P directly or indirectly.

The value of the shares in P must be worth 300 mill if not more.

yet they rather sit by and watch this happen. Now i read PE track also getting sold. Racing is dead.

RA owners are able to stop this if they hold the RA accountable.

The VAT issue is just another example of bad governance.