The state of the Mpumalanga Economic Growth Agency’s persistent under-performance and declining good governance has inevitably necessitated a decision to dissolve its board, and put in place transitional mechanisms to ensure that the organisation is re-engineered to acceptable levels of governance and administrative efficiency.
Mr Norman Mokoena, Member of Executive Council (MEC) responsible for Economic Development, Environment and Tourism, today announced the collective decision of the Mpumalanga Executive Council (Provincial Cabinet), to dissolve the Board of Mpumalanga Economic Growth Agency (MEGA), with immediate effect.
The decision follows an extensive review by the Executive Council on the functioning, performance and governance of the entity, informed by the report presented by the MEC on the state of the agency at the meeting of the Executive Council on 11 May 2011.
The MEGA Board, which was re-established following the consolidation of the Mpumalanga Agricultural Development Corporation (MADC), Mpumalanga Housing Finance Company (MHFCO) and the original Mpumalanga Economic Growth Agency, was tasked with the primary responsibility of leading amongst others, a qualitative merger process and consolidation of the three entities to enable them to carry out their primary role.
“The decision, even though unfortunate, follows a series of interactions between the Department, the MEC and the board, stakeholders and interested parties with the intention of ensuring that MEGA remains an effective and efficient development finance institution for the province of Mpumalanga,” said Mokoena.
Whilst the MEC and the Executive Council appreciates that there are those individual members of the board who carried out their responsibility to the best of their ability, the lack of collective leadership and cohesion of the board remained an impediment on the development agenda of the province.
The continuing challenges affecting MEGA has included, the failure to provide leadership and sound governance in the process of the merger of the three entities, consistently failing to carry out primary policy mandates, failure to carry out strategic investment missions and programmes, corporate governance challenges, and a collapse in the support systems for small, medium and micro enterprises.
Mokoena further stated that, the Board had not demonstrated the required leadership in ensuring an environment that enhances organisational stability, resulting in high levels of anxiety brought about by the state of uncertainty of the merger.
To minimise any negative impact and ensure continuous turn-around of the agency, the MEC will in consultation and concurrence with the Executive Council, put in place an interim governance mechanism as allowed by law to minimise service delivery disruption.
Enquiries:
Mohau Ramodibe
Tel: 013 766 4271
Cell: 082 771 9950
E-mail: mohauram@mpg.gov.za
