Committee on Treasury and Enterprise Development not happy with report of NWDC on the sale of Christiana Hotel School and Dirapeng (Pty) Ltd
On Tuesday 3 November 2015, the North West Provincial Legislature’s Portfolio Committee on Premier, Treasury and Enterprise Development was unhappy with the information presented by the Department of Finance, Economy and Enterprise Development, North West Development Corporation and Dirapeng (PTY) Ltd on the acquisition of Christiana Hotel School.
The committee had requested the NWDC to submit latest documents on the transaction of the property; deeds of sale; auction report and record of negotiations during the auction.
They also requested that a copy of provincial government’s resolution on NWDC’s acquisition of the entity. The Committee also wanted to know why the salary of the Acting CEO, Lemoganga Moletsane is R300 000 above the one of the suspended CEO, Mojalefa Nale.
The Chairperson of the committee, Hon. Raymond Elisha was concerned with the latest transfer costs of R43m to purchase the hotel which exceeded the amount initially agreed upon with the Department of Finance, Economy and Enterprise Development of R40m.
“I am not happy with the explanation on the breakdown of costs presented to us, we need a thorough written report on the costs incurred that should include all renovations to rooms classified as suites and all costs of removable assets," said Hon Elisha.
A record of the deeds of sale and record of negotiations during the auctions was not available.
The committee further needed clarity on the number and types of wild animal species the game farm had when it was purchased. They had identified that the number of species presented on the pre-auction report stating assets of the hotel, versus the number of the post auction report and the evaluation report by the NWDC differs.
“We need to establish the value for money on purchasing the game farm as it only comprises of the less expensive wild species of animals as opposed the animals such as the African Lion and the White rhinos which were once available in the farm,” said Hon. Raymond Elisha
The committee recommended that the NWDC bring details of the previous owner who reported on the assets once owned in the game farm to get the full report on the matter; to get a detailed chronology of events that took place starting at the EXCO resolutions in the acquisition of NWDC entities with supporting documentation; costs incurred of employees from the Cookes Lake as discussed in the previous meeting and the PriceWaterHouseCoopers report.
The committee instructed NWDC to submit a report within 14 working days.
The report should also include a copy of provincial government’s resolution on NWDC’s acquisition of the entity; a detailed information as to why the salary of the Acting CEO, Lemogang Moletsane is R300 000 above the one opf the suspended CEO, Mojalefa Nale; a detailed information on whether any of the NWDC employees are doing business (any service whatsoever) with the entity; and also information on the whereabouts of the species, the number and types of wild animal species the game farm had when it was purchased.
Enquiries:
Namhla Luhabe
Deputy Manager – Communications
Tel: 018 392 7000
Cell: 079 527 0628
Fax: 086 695 3784
Email: namhla@nwpl.org.za
