By THABO KOBOKOANE

WHILE Eastern Cape Attorney General Christo Nel dithers on whether to prosecute Sol Kerzner for an alleged bribe of R2-million to George Matanzima, the hotel magnate continues to build his hotel and gambling empire in North America.

Butch Kerzner, Sol Kerzner's son and president of international gaming resorts for Sun International Hotels, the offshore operations of Sun International SA, would not comment on the impact of a possible prosecution.

In the meantime, however, the US operation is thriving. This week Sun International Hotels reported a jump of 82% in earnings for 1996 to $1.58 a share (1995: 47 US cents) on the back of casino and resort revenue totalling $225-million ($198-million). Operating income improved from $23-million to $34.3-million while net income surged to $45.7-million ($18.4-million).

Butch Kerzner would not provide a divisional breakdown, but said Paradise Island in the Bahamas contributed over 50% to group turnover. The resort had an occupancy rate of 87%.

During the year, SIH opened the $300-million Mohegan Sun Casino, the joint venture with the Mohegan people in Connecticut, north of New York.

Kerzner says the Mohegan Sun had 60 000 visitors when it opened and is turning over more than $1-million a day.

Since the launch of the Mohegan Sun, earnings have received a significant boost. In the fourth quarter last year earnings per share of 47 US cents were more than 260% up on the 13c reported in the same quarter in 1995.

SIH also completed the acquisition of Griffin Gaming and Entertainment, which runs the Resort Casino in Atlantic City. Sun International paid $210-million and assumed Griffin's $127-million debt. SIH was granted an temporary licence to operate the Resort Casino and Kerzner is confident a licence will be awarded.

Kerzner ruled out further acquisitions for the time being. "Our hands are tied for the next three to four years as we consolidate our position."

Work has begun on the $450-million expansion of the Atlantis Resort in the Bahamas, which will add a further 1 200 rooms, new gaming facilities and water themes. In the short term, SIH will seek to bring the Resort Casino in Atlantic City "in line with the 21st century" and in the medium term spend $500-million on expansions.

Meanwhile Sun International SA reported a disappointing net profit rise of 5.1% to R208.8-million for the six months to end-December 1996 (interim 1995: R199-million).

Earnings were up marginally to 26.4c (25.8c) and the dividend was pegged at 15.5c.

Kehla Mthembu, chairman of Sisa, said that the group experienced "mixed trading conditions" in the period under review, as illegal casinos dented revenues in KwaZulu-Natal and the Eastern Cape, including a drop of 8% in the Eastern Cape, especially the Wild Coast Sun.

The closure of illegal casinos in Gauteng "had a favourable impact" on Sisa's operations in North West Province with revenue at Morula Sun and Carousel up 13%.

Mthembu said Sun City benefited from increased overseas visitors, although the group was still expecting a large loss in the current financial year.

The group is also expected to scale down its operations in the North West and Eastern Cape provinces from the current seven to three in each province in line with requirements of the National Gambling Act.

Mthembu said "good progress" had been made in discussions with provincial governments, potential buyers and others stakeholders on the disposal of the casinos.