Issued by: North West Communication Service
10 July 197
Recent media coverage about the administration of the Tribal and Trust Funds has created a misleading and incorrect perception that the North West Government had embezzled tribal funds, and we would like to put the issue in a correct perspective, said North West MEC for Finance and Economic Affairs, Mr Martin Kuscus.
Speaking at a press conference on Thursday, he said, "It was the practice of the former Bophuthatswana administration to borrow from the then Public Investment Commission (PIC) whenever the Exchequer required bridging finance. As this practice occurred frequently, PIC Investments (and hence the Tribal and Trust Funds) were used as rolling finance by the former administration. The then government did not consult the stakeholders and beneficiaries about the investment of tribal funds."
Mr Kuscus said it must be categorically stated that no transactions of this nature took place after November 1994 and especially after the appointment of the new departmental management in early 1995. Since then he had interacted with the stakeholders to deal with the future management of the fund.
"A letter from the lawyers of the Bafokeng tribe, whose funds comprise 80 percent of the Tribal and Trust funds, indicated that an audit by Ernst and Young did not uncover any instances of theft or fraud of monies held in Trust account. This shows there is no evidence whatsoever to suggest embezzlement of tribal funds," he said.
The North West Provincial government is busy with the reconciliation of the Tribal and Trust accounts involving about 2700 accounts inherited from the former Bop government.
In line with the split in provincial and national powers, the former PIC forms part of the national Department of Finance, with the result the national government is busy consolidating the debts inherited by the former TBVC states, and will settle the capital and interest of R200 million.
The Government is investigating the adoption of enabling legislation which may allow the tribes and the Trust Account holders, under certain circumstances, to control their own funds. This would be possible if the Executive Council can be convinced that adequate systemed to safeguard the interests of all stakeholders.
Mr Kuscus said, "The North West government remains committed to open, transparent and good governance, and will pursue this objective relentlessly. We will continue to ensure that remnants and legacies of the old administration do not divert us from establishing an effective administration."
Contact: Phineas Tjie, Deputy Director General. (0140) 873445