Debating the multimillion-rand budget tabled by MEC Makalo Mohale, the DA and the EFF in the Provincial Legislature expressed concerns regarding the structure of the Free State Gambling, Liquor and Tourism Authority, as well as that of the Free State Development Corporation (FDC). The DA's Roy Jankielsohn, told the House that these entities are not doing much to develop the economy of the province and have instead been implicated in a number of corrupt activities.

Jankielsohn's statement on the state of the two public entities comes just days after the Hawks raided the offices of the Free State Development Corporation (FDC) in Bloemfontein.

The FDC was the implementing agent for the controversial Vrede Dairy Project from which the Gupta family allegedly benefited. Over R220 million earmarked to assist upcoming farmers was deposited into the Gupta-linked Estina account at the Bank of Baroda.

The entity also made headlines in October last year when it was listed as one of the top three beneficiaries from the VBS Mutual Bank.

A report titled “The Great Bank Heist” detailed how the FDC, municipalities, companies and individuals allegedly looted approximately R2 billion from the bank.

The DA and the EFF urged Mohale to pay attention to these entities and how they hinder job creation and economic development. The DA's Jankielsohn went as far as to propose an alternative he referred to as the FSDA, which will ensure that the province is marketed correctly, draws investors, and creates the much-needed employment.

Responding to questions raised by the opposition parties and a proposal made by Jankielsohn, Mohale, however, said they have already re-structured these entities and that the Free State Gambling, Liquor and Tourism Authority no longer has excess employees, nor two CEOs.

The Hawks have, meanwhile, confirmed that their investigation regarding the entity is at an advanced stage and that arrests are imminent.

OFM News