The newly formed KwaZulu-Natal Economic Regulator Authority (KZNERA) derives its mandate from the Constitution of the Republic of South Africa Act No. 108 of 1996 (Constitution). The KwaZulu-Natal Economic Regulator Authority (KZNERA) is a public entity (Schedule 3c) established by statute to oversee the KwaZulu-Natal gambling and liquor industries, as mandated by the KwaZulu-Natal Economic Regulator Authority Act 1 of 2024 ("the Act"), which was gazetted on June 3, 2024. KZNERA was established following a decision by the KZN Provincial Legislature to consolidate the former KZN Gaming and Betting Board (KZNGBB) and the KZN Liquor Authority (KZNLA) into a single economic regulator.
As a result of this amalgamation, KZNERA is a Schedule 3C public entity having inherited its statutory identity from its two former entities as detailed in the Public Finance Management Act (Act No. 1 of 1999). These entities are characterised as an extension of the national government with an objective of carrying out specific economic or social responsibility mandates.
Chapter 3 of the Constitution The principles of cooperative government and intergovernmental relations acknowledge as well as prescribe the distinct and interdependence of South Africa's three spheres of government (National, Provincial and Local Governments).
The Constitution imposes the statutory duty of reciprocal respect between each of the governmental spheres in relation to their respective powers, functions, and institutions. These spheres of government must keep each other abreast of new policies or items of concern falling within the remit of their respective mandates.
Chapter 6 of the Constitution Chapter 6 of the Constitution establishes South Africa's nine provinces and describes the provincial sphere of government’s functions and powers. It governs, amongst other matters, the authority of the provincial legislatures and governmental branches.
Section 195 of the Constitution Section 195 of the constitution outlines the basic values and principles governing public administration. These include transparency, responsiveness and accountability, and resource efficiency, economy and effectiveness, respectively. A failure to act in accordance with these values and principles by officials will result in the inability of KZNERA to effectively exercise the legislative obligation of protecting, promoting and enforcing the rights of citizens enshrined in the Bill of Rights.
Schedule 4 and Schedule 5 of the Constitution Schedule 4 and 5 of the Constitution shows functional areas of concurrent competence and functional areas of exclusive competence as follows: Schedule 4: Functional Areas of Concurrent National and Provincial Legislative Competence And Schedule 5: Functional Areas of Exclusive Provincial Legislative Competence
The relevant functional areas of concurrent national and provincial legislative competence of KZNERA are recorded in Schedule 4 of the Constitution. Part A thereof records these functional areas as casinos, racing, gambling and wagering, excluding lotteries and sports pools. Schedule 5 shows the functional areas of exclusive provincial legislative competence