The corporation, which recently came under fire over its investment in the liquidated VBS Mutual Bank, has now come into question during Jankielsohn’s testimony on the controversial Gupta-linked Vrede Dairy Farm. Jankielsohn told the commission, led by Deputy Chief Justice Raymond Zondo, that he does not understand why the Provincial Government still pumps money into the project despite indications that it has failed with millions looted out of the province. He reiterated that the project is not yet functional and sound, yet the Provincial Government still pays approximately R20 million annually for the project, which has now been taken over by the FDC. He said although the FDC is set up to stimulate economic grown in the Free State, support SMMEs, run various projects such as the renting out of facilities and buildings to generate revenue, the Estina project is above its capacity. Jankielsohn says the more than 80 beneficiaries that were meant to receive help have received nothing.

The spotlight on FDC comes just days after the opposition parties in the Free State Legislature highlighted that the state of public entities, which falls under the Free State Department of Economic, Small Business Development, Tourism and Environmental Affairs (Destea), is a great cause of concern.

Debating the R631 million 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 public entities comes just a few days after the Hawks raided the offices of the Free State Development Corporation (FDC) in Bloemfontein.

The Hawks have confirmed that their search and seizure raid conducted at the offices of the FDC is in connection with the entity’s dealings with the VBS Mutual Bank, that the investigation is at an advanced stage and that arrests are imminent.

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