MP wants CS Rotich to account for betting taxes, calls for public debate

Cabinet Secretary for Treasury and National Planning Henry Rotich has flouted the law by not remitting into the National Sports Fund taxes from accruing from betting and lotteries nominated MP Godfrey Otsotsi has claimed.

The MP was reacting to reports Treasury is ready to repeal the Fund via a Sports (Amendment) Bill 2018 insisting the CS must first tell the public how much has been raised since the Act became operational.

“The Sports Act 2013 is very clear that there shall be paid into the Fund all the proceeds of any sports lottery, taxes levied under the Betting and Lotteries,” Hon Otsotsi said.

“Yet even before he tells the public what is in the coffers he has moved to disband the Fund besides illegally channeling the taxes into the Consolidated Fund,” he said.

The Sports (Amendment) Bill 2018 seeks to repeal Part III of the Sports Act 2013 that created the National Sports Fund, which will give the Treasury, and not the Sports Ministry, the absolute control of betting largess said to stand at Sh12 billion.

Sports federations in the country are dismayed the Fund is to be repealed without them being consulted saying it amounts to “betraying the sports fraternity.”

And now Hon Otsotsi has weighed in equating the creation of a new Sports, Arts and Social Development Fund under Treasury to the National Housing Fund, which he described as having “all the makings of a gravy train.”

“By dismantling the National Sports Fund and carting it away to the Treasury, Rotich will effectively be driving the nail on the dreams of the Kenyan youth. It means, setting up of academies at County level will now be a pipedream,” Hon. Otsotsi said.

“This Fund was meant to finance deterrent measures on the youths’ addiction to betting. We have always complained that betting is destroying our youth and when we set up the Fund we were providing solutions to the vice, but CS Rotich wants to destroy with a controversial Bill,” he said.

He added: “This requires serious public debate and not just for some people trying to sneak in a Bill.”

On Friday, several sports federations including Golf, Lawn Tennis, Swimming and Table Tennis distanced themselves from any moves to amend the Sports Act 2013.

Besides establishing the National Sports Fund, the Sports Act 2013 established Sports Kenya (construct, maintain and manage infrastructure) and the Kenya Academy of Sports (establish and manage sports academies).

SPORTS ACT 2013

PART III – ESTABLISHMENT OF THE NATIONAL SPORTS FUND

12. Establishment of the National Sports Fund

(1) There is established a Fund to be known as the National Sports Fund, which shall vest in and be operated and managed by the Board of Trustees.

(2) There shall be paid—

(a) into the Fund all the proceeds of any sports lottery, taxes levied under the Betting, Lotteries and Gaming Act, investments and any other payments required by this Act to be paid into the Fund; and

(b) out of the Fund, financial support for sports persons and sports organizations and any other payments required under the provisions of this Act to be paid out of the Fund.

The Amendment Bill at a glance

1. This Act may be cited as the Sports (Amendment) Act, 2018.

2. The Sports Act, in this Act referred to as “the Principal Act”, is amened in section 2 by –

(a) deleting the definition of Board Trustees” and

(b) deleting the words “the National Sports Fund of Trustees,” appearing in the definition of “Sports institutions.”

3. Section 6 of the principal Act is amended in subsection (1) by deleting paragraph (g).

5. The principal Act is amended by deleting Part III