JUSTIN ARENSTEIN, Nelspruit | Wednesday 10.00pm.
MPUMALANGA’S finance MEC, Jacques Modipane, was aware of the province’s parks board attempts to get an illegal R500-million offshore loan in December last year but failed to report the matter to the Reserve Bank or any other institutions until two weeks ago.
The R500-million loan scheme centred on the first recorded promissory note issued by the Mpumalanga Parks Board to Pacific Bullion International. The promissory note, which irrevocably and unconditionally bound the MPB’s assets to Pacific Bullion as collateral, was cancelled in March when the company failed to pay any of the R50-million per month installments to the parks board.
Finance minister Trevor Manuel branded the scheme illegal three weeks ago.
Modipane refused to comment on the issue on Wednesday night but reportedly became aware of the scheme in February after being tipped off by bankers based in Gauteng. The International Bank of Southern Africa allegedly handed over the R500-million promissory note and a covering letter from former environmental affairs MEC, David Mkhwanazi, to Modipane.
Modipane claims to have launched an internal investigation into the issue under the leadership of Mpumalanga Finance Corporation chief executive Sam Cronje, but has consistently failed to explain why no cabinet or other report was ever tabled.
He has also failed to explain why he did not pre-empt the current R340-million loan scheme scandal in the province by informing the MPB that it was not allowed to issue any more promissory notes.
The Heath special investigative unit, which is investigating all promissory notes in Mpumalanga, confirmed that Modipane handed over documents detailing the first promissory note two weeks ago. – African Eye News Service