Parties slam abuse of state resources
OPPOSITION parties lambasted the abuse of state resources linked to the Economic Growth and Development Fund during the debate on the budget of the Department of Economic Development and Tourism yesterday.
DA spokesperson on Economic Affairs, Boitumelo Babuseng, believed that financial resources of the state were being used by the “politically connected”.
“The department has allowed corruption, abuse of state resources and financial mismanagement to thrive in this fund.
“The department cannot provide the criteria or the transfer policy it uses to approve beneficiaries of the Economic Growth and Development Fund. This suggests that allocations are based on the gut feel and political bias of officials administering the fund.
“Indeed, report after report reveals that politically connected individuals are being enriched– at the cost of deserving, emerging enterprises.”
He was also of the opinion that honest entrepreneurs stood little chance of receiving any financial assistance from the state.
“This is when government officials set up companies with front directors. What is proposed in the department’s budget is just the continuation of a slush fund which operates in the very outer limits of transparency and legality.”
Babuseng stated that he had requested the Standing Committee On Public Accounts (Scopa) to investigate the misappropriation of taxpayers money in this fund.
“Specifically the investigation must delve into the R26 million that was allegedly used to fund the provincial conference of the ANC.
“With the notable exception of the Northern Cape Tourism Authority, the department’s public entities are functioning as criminal enterprises.
“These entities each have a role to play in developing the provincial economy, whether it is through the promotion of investment or the efficient regulation of licenses, which can generate revenue for the provincial fiscus.
“The money these entities get must develop the provincial economy to support the sustained creation of jobs.”
He pointed out that the Northern Cape Gambling Board was operating in contravention of the Gambling Act as it was advertising applications for bookmaker licences despite not having the power to do so after it was disbanded in March.
Cope MPL, Pakes Dikgetsi, added that the Northern Cape was perceived to be lacking in terms of affording youths better socio-economic conditions while 45 percent were unemployed.