Issued by: The Office of the Presidit
In the course of the visit to the Eastern Cape Province the President was reported by a daily newspaper as having said that the Government of National Unity would write off the debt incurred by the former Transkei and Ciskei administrations.
The report in the Beeld Newspaper of the 25th September 1995 indicated that government would write off (afskryf) nine million rands of debt incurred by the former Ciskei and Transkei administrations.
The article goes on to say that the amount would be taken over (oorneem) by the National government.
We would like to point out that the two concepts are not interchangeable, and that the first is in fact incorrect.
The agreement referred to provides for the servicing of certain debts and liabilities of the former TBVC "states" and self governing territories to be taken over by the National Government. This does not mean that they will be written off.
The Government of National Unity has mandated Deputy Minister Alec Erwin to deal with the financial situation facing the new provincial governments and which arises from the rationalisation of the former homelands and "independent states". This includes the management of the debt. He should be contacted for further details.
26 September 1995
Issued by the Office of the President