14 September 1998
Mpumalanga Department of Local Government, Housing and Land Administration would like to issue a warning to all Local Councils in the Province not to sign any guarantees with foreign funders. The warning follows the findings by the Heath Commission on one of the Province's parastatals to have been involved in a shady deal of "promissory notes" and further investigation by his Department on Ekangala and other Local Authorities.
The MEC for Local Government, Housing and Land Administration, Mr. Craig Padayachee issued this warning after receiving reliable information that Ekangala TLC could have or is involved in signing of such a R10m "letter" with a London based financial institution.
Mr. Padayachee appealed to all Local Authorities to be wary and consult with his Department before signing such "deals". He also distanced himself and the Province from such acts that have been committed elsewhere in the Province. "I am aware that Councillors are keen to develop their areas, but that should never be done illegally. Councils are a third sphere of Government in our country and should adhere to national financial policies", He said.
The MEC also said those Local Authorities that are not sure of what they may have signed in the past should contact the State Law Advisors in his Department before 30 September 1998.
Issued by:
Communication Services Department of Local Government, Housing and Land Administration.
Enquiries: Mr. Leon Mbangwa Tel : (013) 755 4810. Fax (013) 752 7715.