Cope wants SAA's R14 billion Free State deal probed

12 December 2015 - 10:46 By TMG Digital

The Congress of the People said it would not be surprised if the R14 billion injection into SAA from the Free State Development Corporation (FDC) had happened when the minister of mineral resources was the MEC for economic development. Business Report reported on Friday that the SAA had secured R14 billion funding from the FDC.The FDC is responsible for driving economic development in the Free State‚ according to its website.Mosebenzi Zwane was appointed the minister of mineral resources in September this year. He previously served as the MEC for agriculture and rural development‚ and for economic development in the Free State government‚ according to the government website.“We have been wondering how a junior member of the governing party became a cabinet minister instantly. The answer is clear. It was payback for a favour given to ‘number one’ and his family and friends‚” Cope spokesperson Dennis Bloem said in a statement on Friday. “There has always been a strong bond between the Free State executive and ‘number one’. Now we know.”Cope said it would ask the auditor general and the public protector to investigate the reported SAA deal which‚ the party said‚ was at the expense of the people of the Free State.“It is shocking to discover that FDC has made an undisclosed contribution to the SAA whilst the province is facing alarming unemployment issues‚” said Bloem. When small and medium enterprises approach the FDC with a business plan they are told to “come back the next financial year as funds had run out”.Zwane’s appointment was met with dismay by the industry‚ Business Day reported at the time. Zwane was viewed within the industry and the ANC as weighed down with the "baggage" of being a Gupta family sanctioned appointment.He replaced Ngoako Ramatlhodi whose removal shocked the industry. A number of senior mining figures said Ramatlhodi’s departure could not have come at a worse time and criticised the fact that Zwane‚ who appears to have little or no experience of the sector‚ was linked to the Gupta family.Zwane was central to a controversial dairy project driven by associates of the Gupta family‚ the Mail & Guardian reported at the time.It also reported that a letter written on Zwane’s behalf provided an "official alibi" to turn a visit for a wedding by members of the Gupta family from India‚ into an official one.That preceded the controversial landing of an aircraft full of Gupta guests at the Waterkloof Airforce Base...

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