Dysfunctional North West public entities fail to spur economic growth and job creation

Issued by Jacqueline Theologo – DA North West Spokesperson on Economic Development, Environment, Conservation and Tourism
08 Sep 2019 in Press Statements

Four key North West economic development public entities are failing to drive economic growth and job creation in the province.

The North West Gambling Board, North West Development Corporation (NWDC), North West Parks Board, and North West Tourism Board, have all failed to deliver on their respective mandates.

During a committee meeting with the Department of Economic Development, Environment, Conservation and Tourism earlier this week it became evident that these four entities are grossly mismanaged.

Considering the current economic downturn, these entities are responsible for the management and oversight of important economic drivers in the province in support of Small, Medium, and Micro-Enterprises (SMME) and Tourism. Through their mandates each entity has the mandate to attract investment, spur economic growth which in turn creates jobs.

The North West Gambling Board overspent its budget on Legal Services by R4.4 million in the 2018/19 financial year.

The NWDC only reached 27% of its targets, yet overspent its budget by 16%.

The NW Tourism Board only reached 4 out of 16 targets, yet managed to overspent on its budget by 59.7%.

Both the NW Parks Board and the NW Tourism Board do not have properly constituted serving boards and are managed by acting CEOs and acting CFOs.

It is evident that these entities are unable to adhere to basic corporate governance standards.

The shocking state of affairs in these entities show complete lack of accountability and gross mismanagement.

In light of the fact that the NW Parks Board and the NW Tourism Board have both already been disbanded, the Democratic Alliance (DA), will write a letter to the MEC of Economic Development, Environment, Conservation and Tourism, Keneitswe Mosenogi, requesting her to also disband the NWDC’s board.

The DA will also write to the Premier to call for an in-depth analysis of the viability of all entities under economic development and decide on their future. Most of them remain breeding grounds for corruption and a burden to the provincial fiscus with no benefit to the province.

The current instability in the NW entities will deter the much-needed potential investors from our province.

The DA will continue their fight for transparent governance. The people of North West deserve to be empowered to grow the economy and create jobs.