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DA slams North West government over ailing SOEs

───   LUCKY NKUYANE 14:45 Tue, 14 Mar 2023

DA slams North West government over ailing SOEs | News Article
PHOTO: SABC News

The DA in the North West Legislature has slammed the provincial government for allegedly pumping millions of rands into failing state-owned entities.

The DA’s caucus leader in the North West Legislature, Freddy Sonakile, said the party is concerned by what he terms as the rate of decline for North West’s state-owned entities (SOEs).

He alleged that the mismanagement and maladministration across these SOEs continues unabated.

"The situation at the North-West Transport Investment (NTI) is most worrisome, the entity has failed to table its annual financial statements since the 2018/19 financial year. Despite this failure, the North West Provincial Government allocated R112 million in bailouts, to address its debt, legal costs, salaries, and business rescue practitioner fees.

In the 2020/21 financial year, the entity received an additional R58 million to pay the South Africa Revenue Services (SARS) which was later adjusted by a further R16,1 million to meet its tax obligations. The NTI was placed under business rescue in 2022 to avoid liquidation, and last week advertised to have its vehicle fleet auctioned.

The North West Tourism Board (NWTB) has also been experiencing financial losses," he said.

Sonakile further alleged that  the Golden Leopard Resorts (a subsidiary of NWTB) is responsible for the decay at the Manyane and Bakgatla Resorts, both of which are now closed.

"NWTB suffered R22,5 million in financial losses over the last three financial years. The board has been unable to pay staff salaries.

Meanwhile, the North West Parks Board (NWPB) recorded R173 million’s financial losses over the last four financial years. It received a R3 million bailout to cover staff salaries.

The NWTB and the NWPB have overseen one of the biggest heists of the province’s tourism sector, placing thousands of jobs at risk. The state of provincial parks and resorts continue to deteriorate while lodges like Manyane are stripped and looted of their assets. 

The North West Hotel School in Mahikeng operates in facilities which are close to collapse and during Tourism Month in September last year, had to close operations servicing the public.

The North West Gambling Board, which has been functional over the last few years, is also showing signs of decline. In the 2019/20 and 2020/21 financial years, it registered losses of R4.5 million and R2.4 million, respectively. There have been numerous court cases on questioning the legitimacy of the CEO and the board. The North West provincial government is yet to comment.

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