DA wants bloated KZN entities reduced from 12 to 5

23 January 2017

The Democratic Alliance will call for the KwaZulu-Natal (KZN) government's bloated entities to be whittled down from 12 to 5 in order to ensure savings on the province’s current annual R2.8billion board and administration bill.

This follows reports last week which confirm that KZN’s Economic Development, Tourism and Environmental Affairs (EDTEA) department is considering a rationalisation process.

The DA welcomes this change of heart by MEC Sihle Zikalala and his department.  We have been lobbying for it for years in the firm belief that  fiscal prudence will prevail.

The DA further proposes that:

- Moses Kotane Institute be moved from Economic Development to Higher Education. This entity is not registered and so it does not fall in line with PFMA requirements.  It has also failed to perform in terms of improving KZN learners’ Maths and Science performances as per its mandate;

- The Ithala Development Finance Company continue its provincial presence as a property and bank license application facility, in particular as a benefit to rural businesses;

- The KZN Liquor Authority and KZN Gambling and Betting Board be amalgamated given that both are licensing authorities with a strong policing component and both require a district level presence;

- The KZN Sharks board continue in terms of its Marine economy mandate and in the interests of protecting bathers on our swimming beaches;

- The Ezemvelo KZN Wildlife entity remain in place in place to protect the province’s biodiversity assets.

The DA will further recommend that KZN’s remaining seven entities be merged under one Board and one Administration.  This has already taken place in the DA-led Western Cape with the successful Wesgro Agency now a one stop shop for the province’s destination marketing, investment and trade promotion.

This same model is entirely feasible in KZN given the province’s unique position as an excellent investment destination for both foreigners and locals.

While KZN entities do have hard-working board members, there are also far too many who have been deployed by the ANC and whose purely political appointments offer little value.

The DA challenges MEC Zikhalala to ensure that the rationalisation of KZN’s entities is finalised before provincial budgets are tabled. Any entity that is not performing must be reviewed, while the department’s focus must be on job creation.

Issued by Ann McDonnell, DA KZN Spokesperson on Economic Development, Tourism and Environmental Affairs , 23 January 2017