Mpho Dube
A boiling pot of trouble that constitutes the parastatal Limpopo Economic Development Enterprise (LimDev) is overflowing with allegations of mismanagement of funds and corrupt conduct. The unbearable situation has moved employees to now call on Economic Development, Environment and Tourism (Ledet) MEC Pitsi Moloto to intervene.
Polokwane Observer
Reportedly, the challenges surface from the culture of entitlement, lake of timeous follow-up on collections, projects abandoned by contractors and lack of aftercare services and monitoring.
In the light of the matter frustration levels are high as staff members are on what is being described as a protected strike because LimDev management refuses to adhere to their problems. Insiders within the parastatal this month were also on strike over salaries disputes and have accused the executive management of harassment and intimidation.
Reportedly some senior staff members have allegedly increased their salaries by over 80% during the 2008/2009 financial year earning over R14 million annually while LimDev is run on an overdraft of R9 million monthly.
In the light of the matter Mr Stan Mathabatha, the CEO of the LimDev who was accused of earning over R2,5 million per annum while his executives earn over R1,3 million said on record yesterday that the shareholder, Ledet will not renew his contract which ends this month. Mathabatha said Limdev is under capitalisation and this makes it difficult for the parastal to accelerate its mandate.
The outgoing CEO further said LimDev doesn’t have enough capacity within the Enterprise Development Finance Division. "Because of these laws of Public Finance Management Act and National Credit Act we are faced with challenges. The biggest disappointment is not having enough staff. Most of the people are acting and that causes problems," he said.
Mathaba said for the past three years the shareholder had a monotorium of staff which make it difficult for LimDev to attract business.
The Chairperson of LimDev Board, Mr Pat Malabela said: "The board will look into the matter and will apply its mind after."
Moloto was made aware of the troubles evolving from LimDev affairs through his spokesperson, Mr Joshua Kwapa, who said the MEC will apply his mind after looking into the matter.
is in possession of a document warning of a serious scenario reflected in the Enterprise Development Finance Division Progress Report for April 2009 to March 2010, which states that only R38,24 million or 35% of the budget was collected against a budget of R110 million. This leaves a variance of R71.76 million (65% of the budget) under collected. To add insult to injury, the parastal’s loan book balance stands at R168 698 298,54, of which R133 627 548, 04 (79,19 %) is in arrears.
