Markus Jooste's race horses will not run under his colours and he will not benefit from earnings at the Sun Met in Cape Town on Saturday.
National Horse Racing Authority chief executive Lyndon Barends said on Thursday that the organisation would distance itself from Jooste who stepped down as CEO of furniture retailer Steinhoff over an accounting scandal
Making the announcement at a media briefing in Cape Town‚ he was supported by the Public Servants Association (PSA) and the Federation of Unions South Africa (Fedusa).
Cosatu announced earlier this week that it would protest at the Sun Met horse race should any of Jooste's horses run‚ possibly placing the jobs of 3‚000 seasonal workers in jeopardy.
Jooste's horse-buying company‚ Mayfair Speculators‚ has been selling off some of South Africa's best thoroughbred racing horses since December after Absa approached the High Court to freeze the company's assets and liquidate it in order to recuperate R266-million.
Jooste is alleged to have used billions of rand in pension fund money to enrich himself through dubious accounting and business practices while he was CEO of Steinhoff.
Barends said only a few Mayfair Speculators horses would be racing on Saturday and the company would be allowed to trade in order to secure the jobs of jockeys‚ cleaners‚ and other workers.
He said that Jooste had resigned from the company and was no longer a member of the National Horse Racing Authority.
"The horses are not going to run under his colours‚ they will run under club colours. He will not benefit directly from any races‚" said Barends.