By KEDIBONE MOLAETSI
Corruption and mismanagement of funds allegations continue to hackle the North West Investment (NTI). This comes after the Business Rescue Practitioner (BRP) that was appointed to assist in resuscitating the embattled NTI dismally failed.
Now, the North West Provincial Legislature’s Standing Committee on Provincial Public Accounts chairperson, Job Dliso resolved that the contract of the BRP be terminated with immediate effect.
Dliso said, this is to safeguard the monies of the North West Provincial government.
“We have the responsibility of protecting the interests of our people and guard against the continuous abuse of funds being embezzled at NTI. The reliance on the assistance of the Business Rescue Practitioner has been fruitless, as there is no comprehensive report on the progress registered thus far since its inception.
“We, therefore, instruct the North West Department of Community Safety and Transport Management to stop all payments made to the Business Rescue Practitioner with immediate effect until all relevant documentation and reports are submitted before the committee to ensure compliance,” he said.
Dliso further said the BRP was appointed by the Shareholder Technical Task Team on 19 July 2022 to intervene in long-standing challenges faced by the NTI. He added, amongst some of the challenges facing NTI, was the failure to submit Annual Financial Statements (AFS), non-payment of statutory obligations, and non-payment of licenses and permits resulting in daily threats of withdrawal of buses leased, due to amounts owed.
“The BRP had failed to submit the Business Rescue plan as per terms of reference and extended his contract, while not having adhered to terms of reference for his appointment. He also failed to follow supply chain management and PFMA even after being advised by Provincial Treasury,” he said.
Dliso further lambasted the North West Premier, Bushy Maape for ‘no show’. He added that, this was not the first meeting, where Maape failed to come and account for issues of NTI.
“We needed clarity, amongst others is why the BRP had opened a separate bank account from the NTI account. We need clarity on the legality of that, the signatories of that account, how much was transferred to the account and how much has been spent to date, and on what.
“We also want the details of the board meeting, including the minutes and attendance registers of the meeting that took a resolution that NTI must be put under Business Rescue. The process followed in putting NTI under Business Rescue included allegations of an existence of a court order revoking the license of the BRP and a comprehensive Business Rescue Plan,” said Dliso.
He asked how BRP request an extension of a contract, while he dismally failed to adhere. Dliso said the BRP allegedly disregarded the legislation, in particular, the PFMA and Supply Chain processes.
“If the extension is granted, it will increase the irregular expenditure the Auditor General (AG) always raised about our entities. As SCOPA, we cannot allow that to happen. We have a duty to hold government accountable and play our oversight role,” said Dliso.
The NTI Group CEO, Grace Sadiki said: “The BRP has not assisted the NTI since its inception and only formally met on 8 November 2022. We have not received any Business Rescue Plan. We do not have a report on the company’s bank accounts, or any bank statements, which affects the preparations of monthly bank reconciliations.
“Changes are not communicated to NTI management, with regard to the appointment of service providers and that procurement processes are not in line with PFMA.”
Meanwhile, the South African Transport and Allied Workers Union (SATAWU) also opposed the extension of the BRP’s contract, stating amongst others that BRP breached the agreement by using his vantage point to advance personal and/ or business interests to supply the state-owned bus company with fuel.
The Guardian 