The Democratic Alliance in the Northern Cape notes with concern that the provincial government continues to mismanage the proposed streamlining of provincial public entities, raising red flags about entities’ abilities to fulfil their regulatory roles and to contribute meaningfully to the provincial economy.

Replies to written questions by the Northern Cape Department of Economic Development & Tourism confirms that “no costing was done” for either the Northern Cape Economic Development, Trade and Investment Promotion Agency Amendment Bill or the Northern Cape Liquor and Gambling Bill, which were gazetted in May.

The lack of thorough costing is obviously a great concern for the ultimate success of the entities, especially for the mega-entity envisioned in amendments to the establishing acts for NCEDA and the Northern Cape Tourism Authority. It is not merely a case of merging two entities into one, because the legislative proposals create specialised mandates that go far beyond the scope of work that was done by the entities before. The department’s own status report on rationalisation describes how the mega-entity will be responsible for, amongst others, the NC Construction Company, the NC Mining Company, the Boegoebaai Port and the De Aar Freight Hub. Neither NCEDA nor the NCTA ever dealt with construction or mining or building a harbour before; these are specialised matters that will require specialised skills and resources to succeed.

While the rationalisation process is underway, we are also concerned about the legal ramifications of decisions taken in the absence of a duly constituted board or a rightfully appointed chief executive officer.

We will demand that the department appear before the Portfolio Committee on Finance, Economic Development & Tourism to brief us fully on what’s been done.

With an expanded unemployment rate of 43% in the Northern Cape, we cannot allow for the provincial government to waste any opportunity for economic development and growth.

 

Issued by Fawzia Rhoda, MPL - DA Northern Cape Provincial Spokesperson on Finance