Monageng defends KRDA projects

LEKOPANYE MOOKETSI
Correspondent | Friday February 26, 2010 00:00

KRDA came into the spotlight at the meeting between the Minister of Education and Skills Development, Pelonomi  Venson-Moitoi and Molepolole South Member of Parliament (MP), Daniel Kwelagobe addressed.

Kwelagobe expressed reservations about the manner in which KRDA has entered into certain commercial deals.Bakwena heard that the proposed takeover of the KRDA by the government would be stalled because the association has accumulated debts.  The government was supposed to take over KRDA next month as part of the decision to take over the brigades nationwide.

But the government has decided that it will not take over any debt-ridden brigades.

During the Molepolole meeting concern was raised about the 35-year lease KRDA entered with Cash Holdings. The lease entailed Cash Holdings putting up a shopping mall at the Mafenyatla plot, which belongs to KRDA.  The company paid KRDA P2 million for the lease. 

During the meeting, some people were however of the view that the lease agreement favours the company.  It was also felt that P2 million was too meagre for a 35-year lease and that there was no escalation clause.

Kwelagobe said it seemed that the agreement does not have a clause that the property would revert to KRDA at the expiry of the lease period.

There were people who expressed concern about the manner in which the KRDA is run. 

During the Kgotla meeting, a KRDA audit report was also discussed.

Speaking in an interview with Mmegi, Monageng said both the KRDA board and the management did not know about the Kgotla meeting.  He only learnt about the meeting just a day before it was held.

However, Monageng said he decided to attend the meeting even though they were not invited.

Monageng said what many people were not aware of was that they found KRDA had sold the Mafenyatla plot to a local company, Atla Investments, when they took over in 2000.

He said the 11-hectare plot was sold for only P800,000.  He recalled that at the time they decided to reverse the deal, the buyers had already paid KRDA P200,000.  He said even a title deed was issued for the company which they had to reverse.

Monageng said they had to negotiate with the businessman who had bought the plot to reverse the deal.

Regarding their deal with Cash Holdings,  Monageng said they had a task force of professionals, which advised the KRDA.  He revealed that the task force, which comprised property valuers, architects and related professionals, took over a year to go over the proposal.

He said KRDA has only leased five hectares of land to Cash Holdings as compared to the whole 11 hectares initially sold to the local company.  

Monageng said after the task force had given them a report, they called a Kgotla meeting where the proposal was discussed.  During the Kgotla meeting they were given the greenlight for the project.

Surprisingly, he said, as an MP for the area, Kwelagobe never attended those meetings.  Monageng said as an MP for the area, Kwelagobe should have assisted in conceptualising the project.

Waving copies of the lease, he said the agreement that they have signed stipulates that the plot can be returned to the community after the lease has expired. 

As for the audit report, the KRDA chairman said it was discussed at the Kgotla meeting before it was presented to the KRDA board.

'We are still waiting to receive a copy of the audit report and respond accordingly.  It was not proper that it should be discussed at the Kgotla before it was presented to us,' said the KRDA board chairman.

He said the audit that was conducted at the KRDA was for the purpose of the proposed takeover. 

Monageng said during the auditing, the auditors raised certain administrative issues with them but which had nothing to do with misappropriation of funds.

One of the issues raised was that staff members were not depositing cash from the KRDA businesses on time.

But he said the administrative issues raised were common in all organisations run by  the community.

He said due to financial constraints, community based organisations do not employ highly qualified personnel.

Monageng admitted that KRDA has some debts, which according to him, were totaling about P1.6 million at some stage.  The debts were in relation to severance pay, terminal and other staff benefits.  He said they also owed suppliers.

Monageng said KRDA accumulated the debts because the brigades were no longer making business.  He said people prefer to buy ready-made furniture rather that have the brigages' carpentry section design for them like during the old days. 

'The brigades are facing stiff competition,' he said.  He said it is a good thing that they should be taken over by the government. The KRDA chairman said they also used part of the deposit that was paid by Cash Holdings to clear some of their debts.  He appealed to the community to assist KRDA pay for their debts so that the institution could be taken over by the government.

He said the fact that KRDA was owing did not mean the institution was being mismanaged. 'We are not denying that we are owing.  These are legitimate debts that we acquire as an organisation,' he said.

Monageng, who is a specially nominated councillor, questioned the patriotism of some Bakwena tribesmen who do not appreciate development projects initiated by the KRDA like the Mafenyatla mall.  He said people should not only be looking to government to initiate development projects, adding that Bakwena should be celebrating the establishment of the Mafenyatla mall.  In his view, there is every reason to celebrate because the Mafenyatla mall has not only transformed the 'sleepy village's  landscape but has also created much needed jobs'.