WEDNESDAY, 4.30PM
THE Mpumalanga government is to wind up the procince’s Development Corporation and Finance Corporation for failing to perform within the provincial government’s policy framework, acting premier Jacques Modipane said on Wednesday.
Modipane added that allegations of corruption in the two bodies necessitated their closure.
The MDC ran afoul of the provincial government when its former CEO, Patrick Mogorosi, became embroiled in corruption charges earlier this year. An external investigation by Coopers & Lybrand found a series of instances of irregular spending and abuse of power.
Mogorosi was allowed to resign with a large severance package, despite concrete evidence he had overclaimed for expenses. After Mogorosi left the MDC, premier Mathews Phosa announced the rationalisation of the corporation. Modipane said the rationalisation will entail the complete dismantling of the corporation and its sister Finance Corporation.
The process will be managed by a special 10-member steering committee of business and professional experts. Members of the steering committee include Mpumalanga regional Nafcoc president Steve Skhosana, provincial Sacob president Fiona Martin and labour relations expert Mike Jarvis. A chairman is still being sought for the committee.