FDC should focus on its core function

Peter Frewen MPL

DA Free State Spokesperson for Finance

Note: The following members statement was delivered during the a sitting of Free State Legislature

The Free State Development Corporation has over the years only managed to build up a loan book of some R310 million. This is extremely disappointing to say the least. The FDC should by now have built up a veritable empire of small to medium enterprises creating employment for thousands of people, but sadly that has not happened.

What is not acceptable is that the FDC only manages to collect between 30 and 35% of interest and capital redemption on its loan account. We accept that the FDC operates in a high risk environment but to have such a low collection rate is totally unacceptable – this points to poor management.

On the other hand, it came as a shock but no surprise when a Board member of FDC said that political intervention often interfered with decisions made by the Board.

It was also a surprise to hear that the FDC is the implementing agent for the building of four clinics for the department of Health. This is the work of the Department of Public Works and who ever gave the go ahead for this to be done surely has no faith in the department of Public Works.

Political interference in decisions made by the Board of the FDC is not acceptable and the FDC should focus on its core function – creating small to medium enterprises.

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