Mpumalanga Economic Growth Agency (MEGA) still used as cash-cow for ANC cadres

Issued by Bosman Grobler MPL – Spokesperson on Finance & Economic Development
01 Apr 2020 in Press Releases

The Democratic Alliance (DA) calls for the Mpumalanga Economic Growth Agency (MEGA) to be disbanded as the entity is still being used as a cash-cow for ANC cadres.

In the last two financial years, MEGA recorded a net loss of more than R200 Million which cannot be accounted for. This is according to the entity’s own financial documents. In 2017/18 financial year, the entity recorded a net loss of R138 987 583 and R63 627 573 in 2018/19.

The entity also struggled to meet its target on generating income and therefor the revenue decreased from R196 521 112 in the 2017/18 financial year to R190 767 871 in the 2018/19 financial year.

MEGA’s main mandate is to stimulate growth in the various sectors of the provincial economy. Yet in the past two financial years, they have not been able to deliver on their mandate. They only achieved 26% of their set targets for the last financial year.

MEGA’s CEO Themba Camane, could only say that the entity has major challenges due to the ongoing moratorium which has contributed to 46% vacancy rate.

To make matters worse, MEGA’s Chairperson Mr D.S Mkhwanazi stated that 2019 was the entity most challenging year, as a significant amount of board members resigned a month before the 2018/2019 financial year ended.

MEGA is managed by a board of directors who works with a Charter which sets out the governing body’s role and responsibilities, as well as the requirements for its membership, its meeting and other procedures.

In response to the Democratic Alliance (DA) Parliamentary questions, it was stated that even though the entity has a net loss, salaries as well as the Board’s remuneration will not change.

The DA will be submitting questions to Pat Ngomane the MEC for Finance, Economic Development and Tourism, regarding the Board members who resigned, as how were they selected and what were the reasons for their untimely resignations?

The DA believes that MEGA, has reached the end of its lifespan and unless drastic changes are made within the entity, it will continue drain the province financially instead of inspiring economic growth.

Since its inception, MEGA had made no positive contribution to the economy of this province. Instead it continues to be used as a vehicle to channel tax payer money to connected cadre, and ultimately, back into ANC coffers.

The DA’s call for MEGA to be disbanded continues to be backed by concrete statistics. The provincial economy has and continues to be stagnant. This province is in need of a government that possess the right leadership with the political will to make necessary changes, so that the lives of residents can improve.