The DA in Limpopo rejects the latest attempt by the Limpopo Economic Development Agency (LEDA) to halt its own ongoing collapse, and that of its subsidiaries, through a desperate and ill-considered reshuffling of board members across entities within the LEDA stable.
LEDA exists to drive Limpopo’s economic development. Yet, Limpopo’s economy continues to fail to grow at the rate required to meet its developmental challenges. There is a strong possibility that, when the statistics for quarter two are released, Limpopo will officially be in a recession. The province lost 55,000 jobs in the last quarter alone.
LEDA consumes over half of the Department of Economic Development, Environment and Tourism’s (LEDET) budget, yet there is hardly a single entity in its stable that is not dysfunctional, riddled with malfeasance, fiscally unsustainable, under investigation (including criminal), or simply failing dismally to deliver on its mandate.
Shuffling board members of failing entities and expecting a turnaround is akin to the proverbial rearrangement of deck chairs on the Titanic—expecting it not to continue sinking. This is cadre-esque impunity at its most brazen.
We need, as we in the DA call it, The DA calls for the appointment of ‘fit for purpose’ directors — individuals chosen not for who they know, but for what they know; directors with the knowledge, expertise, and acumen to govern, not recycled and refurbished failed cadres.
We see no logic in, inter alia, the redeployment of the Chairperson of the failing MMSEZ to a housing finance company (Risima); the movement of a director from Risima to the dysfunctional bus company (GNT); or the transfer of a GNT director to Risima.
It is LEDA and its board that must account, in the first instance, for their stewardship of Great North Transport (GNT), the Musina-Makhado Special Economic Zone (MMSEZ), and New Era Life.
At its peak, GNT operated a fleet of 540 buses, served over 200 routes, and transported 36 million passengers annually. Today, it teeters on the brink of collapse, with only 23 operational buses remaining, and its turnaround strategy in tatters.
Over a decade has passed since the divisive and controversial MMSEZ was proclaimed. Yet, despite at least R150 million already spent on consultants and so-called infrastructure, there is still no tangible development or meaningful job creation.
New Era Life is in an existential operational and licensing crisis, with its licence suspended by the Prudential Authority of the South African Reserve Bank.
If we are serious about restoring governance and unlocking growth and development, we must urgently shift from a culture of recklessness to one of consequence, discipline, and accountability.
In rejecting this chimera, LEDET’s desperate reshuffle, we ask: what value, assurance, and fiduciary responsibility does LEDA’s board truly offer?