The Free State Development Corporation (FDC) board says it will implement consequence management to resolve the institution’s financial troubles.
The board has disclosed that the entity has a huge deficit and it is also owed a lot of money.
As part of its renewal strategy, a new board has been appointed and has 36 months to turn the entity around.
The board has made a call to past funding beneficiaries to repay the loans so that the board can continue to fund other businesses.
The embattled entity faced liquidation.
Auditor-General (AG) Tsakani Maluleke, has reported irregularities found at the FDC to the Hawks for criminal investigation.
The AG has recommended that the management of the FDC look into resolving the irregularities.
The board chairperson Dr. David Mohale says, “We have agreed that the relevant committee of the board must start to have a conversation with management on introducing performance management. Otherwise it will be very difficult for us to know what we are doing in the absence of performance management systems.”
“That is not going to be used to police anyone or to intimidate anybody. It is going to be introduced to assist all of us to account to the public on what is it we are doing and how we are doing it.”
The Free State government says its decision to rescue the Development Corporation is because it believes it still has a critical role to play in the economic growth of the province.
Meanwhile, Free State MEC for small business development, tourism and environmental affairs, Makalo Mohale says it was important to save the entity from being liquidated.
“We take keen interest in ensuring that the strategic role of the entity as a catalyst for economic development is not eroded. We still value the FDC as one of those important entities. That is why we said whatever that we do, we cannot do it for ourselves or do it behind the close doors. The public must know,” adds Mohale.-Article by Kamogelo Seekoei
