SOUTH AFRICAN NATIONAL PARKS' RESPONSE TO ALLEGATIONS MADE BY THE DEMOCRATIC PARTY

27 October 1999

The Democratic Party has made serious allegations regarding the financial situation of South African National Parks. We respond as follows:-

South African National Parks is not bankrupt. We did experience some cash flow problems at the beginning of the year during our low tourism season, but the situation has turned around. Our annual financial statements, audited by PriceWaterhouseCoopers, are readily available.

The Board of the Industrial Development Corporation has recently approved a loan to SANP for R137 million. However this is for new tourism developments, park expansion and improvement of park infrastructure. It is not for addressing the cash flow situation or for covering any operational expenses. Obviously the IDC had sufficient confidence in the ability of the SANP to repay the loan.

Regarding RAFOS, SANP's reservation system, it did experience teething problems when first implemented about a year ago but it is now fully functional.

These allegations by the DP originate from disgruntled employees who are unhappy with the changes involving the consolidation of the organisation's support structures in line with SANP's philosophy of improving operational efficiencies which is consistent with good corporate governance. Their grievances are being handled by lawyers.

With regard to the provision of security in the Kruger National Park we are not aware of any improper procedure in the allocation of the contract.

The RAFOS booking system has not been outsourced and indeed a forensic audit has been conducted on Kruger National Park at our request by PriceWaterhouseCoopers, the results of which are publicly available. These results, which were of no material consequence, can be obtained from our Finance Department.

Media Contact:

Dr Salifou Siddo
Head: Corporate Affairs
Tel: (012) 434 9770
Fax: (012) 343 0153
E-mail: Salifous@parks-sa.co.za