JUSTIN ARENSTEIN, Nelspruit | Sunday 7.00PM.
MPUMALANGA Parks Board’s embattled chief executive, Alan Gray, dismissed reports on Sunday that a secret R340-million loan scheme using the region’s game parks as collateral was illegal.
The scheme was branded as illegal by finance minister Trevor Manuel on Saturday and is being investigated by the Heath special investigative unit and a team of forensic auditors.
Provincial finance MEC Jacques Modipane has also accused the deal’s signatories of fraudulently attaching his signature and official stamp to the deal.
African Eye News Service reports that Gray signed three promissory notes totalling US$50-million to a company called Fenetic Investments in return for a one-year self liquidating loan.
The controversial promissory notes, which were reportedly signed without Reserve Bank, state treasury or ministerial approval and without the knowledge of the MPB’s own board of directors, irrevocably and unconditionally bind the parastatal’s assets to Fenetic for the contract period.
The loan will, according to the deal’s facilitator, Equifin International chairman John Cottrill, allow Fenetic to use the MPB’s assets as collateral to raise roughly R340-million.
Fenetic will pay the MPB half the amount and will use the remaining half to invest in high-interest schemes with the aim of doubling the money by the end of the contract.
Financial experts warn, however, that if the investments fail, the MPB stands to loose its assets. — African Eye News Service