Issued by: North West Communication Services
PRESS STATEMENT BY NORTH WEST MEC FOR FINANCE AND ECONOMIC AFFAIRS, MR MARTIN KUSCUS, ON THE PAYOUT TO FORMER NWDC EMPLOYEE, EDDIE MANGOPE 12 APRIL 1996:
Good Afternoon, members of the press:
Thank you for attending this press briefing which is aimed at laying to rest the issue of the North West Development Corporations payout to Eddie Mangope when his services were terminated.
At this stage, I would like to briefly sketch the background to events leading up to media speculation that Eddie Mangope received a payout of about R5-million.
As you are aware, soon after the collapse of the Bophuthatswana administration in 1994, events got out of hand at the then Bophuthatswana National Development Corporation.
The Joint Administrators then instituted the Khumalo Commission of Enquiry to investigate relevant matters at the corporation. Amongst others, Eddie Mangopes position at the corporation was investigated.
During the Khumalo investigation, Eddie Mangope was already under suspension subject to normal labour relations procedures. Even though the Khumalo Commission found that he had not been implicated in any alleged irregularities, the political climate was such that it was not deemed in the interests of the effective functioning of the now NWDC to keep him on board.
A lengthy process then began with the view to retrenching Eddie Mangope.
His retrenchment came into being on 1 February this year. Contrary to media speculation and the overall impression created, Eddie Mangope received nowhere near R5-million.
A capital settlement of R1-million was agreed upon which included R500 000 for restraint of trade meaning that he cannot use the NWDC property and intellectual rights to further his own private business.
Out of that R1-million, several deductions were made regarding monies owed to the NWDC for his house etc. A net amount of R327 925 was the payment, out of which he still had to pay income tax. As the media can see, claims that he could have received R5-million are way off the mark.
I will now hand over to Mr Moss Sindane of the NWDC for further clarification after which we will take questions.
I thank you.