Free State Development Corporation Board of Directors Commits to Implementing Consequence Management

The board of directors of the Free State Development Corporation (FDC) said it would implement consequence management to address the institution’s financial problems.

The board revealed that the entity has a huge deficit and also owes a lot of money.

As part of its renewal strategy, a new board of directors has been appointed and has 36 months to turn the entity around.

The council has called on former funding recipients to repay the loans so the council can continue to fund other ventures.

The beleaguered entity faced liquidation.

Auditor General (AG) Tsakani Maluleke, reported the irregularities found at the FDC to the Hawks for criminal investigation.

The GA recommended that FDC management look into resolving the irregularities.

Chairman of the Board, Dr David Mohale, said: “We have agreed that the relevant committee of the Board should initiate a conversation with management on the introduction of performance management. Otherwise, it will be very difficult for us to know what we are doing in the absence of performance management systems.

“It will not be used to control anyone or to intimidate anyone. It is going to be introduced to help all of us be accountable to the public for what we do and how we do it.

The Free State government says its decision to save the Development Corporation is because it believes it still has a vital role to play in the province’s economic growth.

Meanwhile, Makalo Mohale, the Free State’s MEC for Small Business Development, Tourism and Environmental Affairs, said it was important to save the entity from liquidation.

“We want the entity’s strategic role as a catalyst for economic development not to be eroded. We always appreciate the FDC as one of those important entities. That’s why we said that whatever we do, we can’t do it for ourselves or do it in secret. The public needs to know,” adds Mohale.-Article by Kamogelo Seekoei

The Free State Development Corporation Board of Directors is committed to implementing consequence management. The leader of information in Africa..

Luisa D. Fuller