Open letter to South Africa’s students‚ universities and government‚ represented by Minister in the .
THE beleaguered Moses Kotane Development Agency in North West has been deregistered for non-compliance by the Companies and Intellectual Property Registration Office (Cipro).
Last year, Sowetan published an exposé on allegations of corruption, fraud and the misuse of funds by Moses Kotane municipality officials.
The development agency was formed by the municipality to be a "proactive regional economic agency that drives sustainable economic development" in and around this municipality.
A council meeting in September last year noted the "sad reality" that the agency had "failed in all its goals ... and in so doing wasted millions of its investors' money".
"To make matters worse ... the agency could not pay the salaries of its directors and staff for three months. The agency never submitted reports, annual budgets or financial statements on time."
The municipality is situated near Rustenburg.
Cipro is part of the Department of Trade and Industry and responsible for the registration of businesses and intellectual property rights.
On the agency's webpage, Cipro notes: "Please note that this enterprise is currently in process because of non-compliance towards annual returns in our register."
Cipro spokesperson Elsabe Conradie said the agency had registered as a private company and was being deregistered because it did not fulfill requirements as stipulated in the Companies Act.
"MKDA has not submitted financial statements since 2007, returns for 2009/2010 are also due."
She said it was up to the MKDA to submit all returns due and pay all penalties, including annual return fees, in order to be registered again.
Contacted for comment, the municipality's spokesperson Beauty Makganye said a report on the finances of the agency was presented to council "for noting" last year.
"Council is the highest decision-making body that makes decisions about governance and policy matters," she said.
"You will gladly be informed of the council's position once the decision is taken on the matter."
Cosatu in North West said it had alerted authorities to the alleged corruption in the agency.
"Cosatu can openly report with dismay that since its formation and inception in 2006 this agency has never forwarded even one report to all its funders."
It added that Mayor Peter Molelekeng indicated in his last budget speech that the agency was to get R24million for the 2009/2010 financial year.
"But even now there is nothing to show as to where those millions went," said spokesperson Modito wa ga Molebalwa.
He said employees were owed their salaries "while a group of so-called board of directors was recently paid about R400000 for doing nothing".
The municipality includes Mogwase and Madikwe townships, over 100 villages and Sun City resort.