DA Limpopo slams staggering remunerations paid to LEDA executives

LIMPOPO

The Democratic Alliance (DA) in Limpopo, stated that they will be writing to the MEC for Treasury in the province, Kgabo Mahoai, requesting his accountability on alleged outrageous remunerations paid to the Limpopo’s Economic Development Agency (LEDA) executives.

The staggering remunerations were revealed by members of Limpopo’s Select Committee on Public Accounts (SCOPA), after receiving documents indicating that some LEDA executive members are earning more than R4 million per annum.

The party said they will also request Mahoai to ensure that budget allocated to the agency is ring-fenced for intended operational costs.

LEDA is a Limpopo Provincial Government agency responsible for providing support to Small, Medium and Micro Enterprises (SMMEs), including business development services and mentorship.

Jacques Smalle, DA Provincial Spokesperson for Limpopo Economic Development, Environment, and Tourism (LEDET), said they were shocked to discover that some of the agency’s executive remunerations exceeds that of the state president.

“We will also request a breakdown of the qualifications and experience of LEDA’s executive, given their outrageous remuneration and the poor and mismanaged state of the state owned entity, and for details of the grossly exorbitant subsistence and travel (S&T) claims paid out to these executives, including the regularity and number of sittings of LEDA’s board,” explained Smalle. 

Smalle said it is a shame that LEDA, which is unable to sustain itself and is bailed out by the provincial treasury every financial year, is paying its executive members more than the president.

“Two of the executives receive the excess R4 million per year, higher than the R3,9 million earned by the president of the country. Additionally, eight agency members earn more than R2,4 million per annum, more than ministers of the South African cabinet, with several earning more than the premier of Limpopo,” informed Smalle.

He added that a repulsive R62 369 447 was spent on the emoluments of LEDA’s executive group.

“Adding to the insult, some members of the LEDA board were paid subsistence and travel claims to the outrageous tune of R788 127, R389 239, R379 069 and R248 816 respectively, whilst others’ claims varied between R7 950 and R115 388 for the year in question. A cumulative R2 747 672 was paid out in subsistence and travel claims,” Smalle said.

He said the party is absolutely appalled by these revelations, the magnitude of which is insulting to the people of Limpopo, many of whom are jobless, live in poverty, and have little hope given the failure of LEDA in driving economic development in the province.

“We are on record as constantly calling for the cessation of the continual bailing out of failing state owned entities. Our state owned entities are there to deliver, not to ensure the enrichment of comrades, cadres, and cronies at the expense of Limpopo’s citizenry. We will not tolerate LEDA being operated as a gravy train to maintain the lavish lifestyles of an elite, whilst joblessness and poverty escalates. There can be no justification for these excesses as exposed in SCOPA. The LEDA gravy train must be stopped in its tracks,” Smalle said.