Mpumalanga Economic Development and Planning on suspension of Chief
Financial Officer and Operations Manager

Suspension of Chief Financial Officer and Operations Manager of
Zithabiseni Lodge and Resort

11 March 2009

The Department of Economic Development and Planning has suspended the
Operations Manager and Chief Financial Officer of the Zithabiseni Lodge and
Resort with immediate effect.

The suspension of the two officials follows serious allegations of
impropriety in the financial management of the resort.

The allegations further point to serious challenges such as lack of proper
procurement processes, lack of accounting on revenue, and general failings in
corporate governance in the resort.

The resort has been experiencing numerous challenges in the past years. Late
last year the department seconded a management team to ensure smooth running of
the resort and to assist it to comply with legislative prescripts.

The department took these actions in the interest of safeguarding the
government’s investment and to protect the interest of the employees who may
have been affected by the alleged violations on the part of the management of
the resort.

It has come as a disappointment to the department that after it has
positively intervened to help rectify the situation the management of the lodge
failed to learn from the departments’ team.

The department will institute an investigation into the allegations in order
to verify their veracity. The department is committed to fighting corruption
and will leave no stone unturned should the investigation find any wrong doing
on the part of Zithabiseni Lodge and Resort management.

Enquiry:
Thomas Msiza
Cell: 082 500 0137
Tel: 013 766 4136
Fax: 013 766 4617
E-mail: Tmsiza@mpg.gov.za

Issued by: Department of Economic Development and Planning, Mpumalanga
Provincial Government
11 March 2009

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