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IFP: Statement by Inkatha Freedom Party, calling on KZN Premier Zweli Mkhize to tighten screws on public entities (17/07/2012)

17th July 2012

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The IFP is calling on KZN Premier Dr Zweli Mkhize and the line function MECs in his provincial government to exercise more vigorous oversight over the public entities under their watch as several public entities face allegations of corruption in top management.

“With two CEOs of public entities recently suspended for alleged corruption, the time has come for Premier Mkhize to step into the fray and control the reputational damage caused to the Royal Household Trust and the Dube Trade Port,” said Leader of the Official Opposition in KZN Blessed Gwala.

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Two CEOs of KZN’s public entities, Rohan Persad of the Dube Trade Port and Nkululeko Luthuli of the Royal Household Trust, have recently been suspended pending investigations into corruption. Luthuli has since resigned. These developments follow the suspension of Sipho Shabalala – the former CEO of another public entity – Ithala – two years ago.

“The suspensions of CEOs show that the independence granted to the province’s public entities came without the necessary safeguards on the part of the Premier and the line function MECs who are the executive authorities for these public entities. Ultimately, the buck must stop with the Premier,” said Gwala.

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The Royal Household Trust falls directly under the executive authority of the Premier while the Dube Trade Port is attached to the Department of Economic Development and Tourism headed by MEC Michael Mabuyakhulu.

“We have long argued for more vigorous oversight of public entities by the Premier and the line function MECs to ensure that the province’s two dozen public entities fulfill their mandate, work within their budgets and operate in a transparent manner,” said Gwala.

The IFP has also called for a review of KZN’s public entities to assess their performance and determine whether or not they are still fulfilling their legislative mandate, whether they are still relevant to the provincial government’s overall policy approach and whether they justify the increasing budget allocations earmarked for them.

“Based on the outcome of such an assessment, we would anticipate far-reaching reforms in the funding and management of all public entities, particularly with regards to the number of employees, remuneration of managers, measurable objectives and general oversight,” said Gwala.
 

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