THE embattled Mpumalanga Economic Growth Agency (Mega) has entered into multi-million rand contracts despite plans to merge it with two other entities by the end of the year.

THE embattled Mpumalanga Economic Growth Agency (Mega) has entered into multi-million rand contracts despite plans to merge it with two other entities by the end of the year.

The announcement was made by Premier David Mabuza when he delivered his first state of the province address.

But despite this Mega has entered into three IT contracts of which one involves more than R9million.

Mabuza said Mega, the Mpumalanga Agricultural Development Corporation and Mpumalanga Housing Finance Corporation would merge to form a single parastatal to consolidate government resources.

Sowetan has since established that irregularities and mismanagement by executives and the board of directors were continuing.

Companies with which Mega has sealed major contracts include Dimension Data, Faranani Supremo, and ICT Works.

Another Johannesburg-based company has been appointed to conduct a cultural intervention exercise for R1,4million despite the pending merger.

Last week Sowetan reported that Vumacom - also from Johannesburg - was appointed by Mega for a whopping R280850 for six months to deal with media enquiries.

Mega once paid R30000 to Vumacom to answer questions from African Eye News Service and Ziwaphi, a local newspaper.

Mega chief operations officer Elvis Rabokgale and spokesperson Samantha Beresford could not be reached yesterday .