NEWS & ANALYSIS

Supra administration: Another R200m under NWDC gone – DA NWest

Party says lifestyle audit needed into top management of development corporation

Aftershocks of Supra administration: Another R200 million under NWDC gone

4 September 2018

The Democratic Alliance (DA) in North West will write to Premier Job Mokgoro, requesting him to order a comprehensive lifestyle audit of top management of the embattled State-owned enterprise (SOE), the North West Development Corporation (NWDC) and its subsidiaries.

This follows last week’s Portfolio Committee meeting on Premier, Finance, Economy and Enterprise Development where it was again disclosed that close to R200 million has been fruitlessly wasted.

This exorbitant amount is derived from a tender awarded to Mvest Trust in the amount of R49 million, an irregular contract awarded to Tokiso Security Services in the amount of R120 million and the Youth Entrepreneurship Services (YES) Programme where a whopping R10 million was barely enough to train 39 youths.

NWDC management needs to explain how Mvest Trust received R49 million to establish a dry-cleaning service that never saw the light of day. We also want to know what Pule Mabe’s involvement in this is, as it is said that he holds patent rights for the development of a dry-cleaning application (app) for phones.

To this day, the irregular tender of almost R120 million awarded by NWDC to Tokiso Security Services has not been accounted for.

The Youth Entrepreneurship Services (YES) programme launched by the Premier’s Office in 2017 was to be funded by NWDC, but no sustainable jobs have been yielded from this programme. The R10 million allocated only managed to assist 39 youth before the project ran out of money. No plausible explanation was offered for this failed programme.

If Premier Job Mokgoro is serious about eradicating corruption from the North West, an investigation into the dealings of Supra, along with all top managers of NWDC should be launched. Those found guilty of tender rigging and money laundering should be prosecuted for the gross mismanagement of state funds.

The fact that NWDC only managed to generate 55% of the planned revenue target, reveals how they dismally failed their mandate of planning, financing, coordinating, promoting and carrying out the economic development in the fields of industry, commerce, finance, mining, tourism enterprise-related activities and other business resulting in wealth and job creation.

Upon close inspection, it is clear that millions of Rands had been channelled to NWDC’s subsidiaries with no viable profits to show for it. The Golden Leopard Resorts Group falling under Dirapeng (SOC) Ltd, Tokiso Security Services, Kgama Wildlife (SOC) Ltd, Special Economic Zone Company, along with their property rental of commercial, industrial and residential properties are but a few examples of the wasteful endeavours this entity has embarked on.

The people of North West need a government that empowers the youth through job creation and economic growth. Only the DA can bring change for all South Africans where there will be opportunities for all.

Issued by Jacqueline TheologoDA North West Spokesperson on Finance, Economy and Enterprise Development, 4 September 2018