It is gravely concerning to learn that National State-Owned Enterprise, the Coega Development Corporation (CDC), which has been tasked with the upgrading of 12 small boat harbours in the Western Cape at a cost of R400 million, has been allegedly implicated in the looting of R1,6 billion from the Eastern Cape province as outlined in a City Press exposé yesterday, 1 July 2018.
I will be writing to the National Minister of Public Works, Thulas Nxesi, to determine what checks and balances his Department will undertake to ensure that the CDC spends its R400 million budget effectively in the Western Cape. Money meant for our residents must be spent on our residents.
I am also concerned that National Government has contracted the CDC, which is based in the Eastern Cape’s Nelson Mandela Bay Municipality, to undertake work in our province instead of using this as an opportunity to use local companies and create localised employment for Western Cape residents. This raises suspicion around National Government abetting corruption by means of strategic state-owned entities.
This contract is also particularly worrying as it does not give the Western Cape Provincial Parliament the opportunity to effectively oversee this project, given the serious allegations levelled against the CDC.
This creates the potential for further corruption at the hands of National Government in our province, while our small-scale fishermen and women await the necessary infrastructure upgrades in order to fish. We cannot allow National Government to loot the Western Cape as it has allegedly done in the Eastern Cape. The CDC must be held to account.
As the DA in the Western Cape, we remain committed to ensuring sound service delivery by means of clean, accountable governance at any cost.
Beverley Schäfer, MPP
DA Western Cape Spokesperson on Economic Opportunities, Tourism, and Agriculture
The article referenced above can be found here: https://www.news24.com/SouthAfrica/News/how-to-loot-r16bn-20180630-2
The accusations include:
The report, prepared by Treasury, was about the construction of a number of roads in the Eastern Cape, which the then department of roads and public works commissioned. The department paid R320m to Aqua and other companies for 10 projects which had also been awarded to the CDC.
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