Economic Development Annual Report

Annual Report 2023/2024 Mpumalanga: Department of Economic Development and Tourism - Vote 6

DATE

MATTER RAISED BY PORTFOLIO

HOW THE DEPARTMENT ADDRESSED THE MATTERS The Department has not yet received feedback from the Office of the Premier on the status of the recommendation made to the Executive Council. The Appointment of the Accounting Officer is the competency of the Honourable Premier.

16 Nov 2023 (2nd Quarter Report)

The Department must keep the Committee abreast on the status of approval of the report with a recommendation that was submitted to the Executive Council for consideration, with regards to filling the vacant position of the Accounting Officer (HOD). A progress report in this regard must be submitted to the Committee before the end of the fourth quarter of the current 2023/24 financial year. The Department must ensure that the appointment of the permanent Board of the Nkomazi Special Economic Zone (SEZ) is completed within the current 2023/24 financial year; and moreover, keep the Committee abreast on the establishment of the SEZ as a subsidiary of MEGA. The department must further provide progress in this regard by 31 January 2024.

The required approval for the advertisement of board members to the Nkomazi SEZ Entity has already been obtained and the required procurement processes for the advertisement in the media is at an advanced stage. In as far the matter of the establishment of the SEZ as a subsidiary of MEGA it can be reported that the Department obtained a legal opinion through the Office of the State Attorney, which in conclusion states that: “Considering the above, I am of the view that MEGA could establish Nkomazi SEZ as a wholly-owned subsidiary as per A ’Africa Pest Prevention CC and Another v Competition Commission of South Africa, and the Memorandum of Incorporation of Nkomazi SEZ SOC LTD. MEGA and Nkomazi SEZ will be governed by their respective legislations which established them. Over and above complying with the establishing legislations, both entities must comply with the PFMA and its regulations, Companies Act, and King III Report on Corporate Governance.” The Department would thus act in accordance with the above-mentioned legal opinion in order to establish the Nkomazi SEZ Entity as a wholly-owned subsidiary of MEGA. The Department has finalised the Supply Chain processes on the Mpumalanga 360-degree Route Project, and will be appointing the Service Provider before the 15 December 2023. On the two (02) Municipal Tourism Sector Plans, the Department has received one proposal which is also not compliant with the Supply Chain processes.

The Department must ensure the finalisation of the Terms of Reference (TOR) for the Mpumalanga 360-degree Route Project, as well as the two (02) Municipal Tourism Sector Plans before the end of the current 2023/24 financial year; and further, submit a progress report in this regard not later than 31 January 2024.

However, the Department has since re-advertised the project calling for proposals from the market. This process will be closing on the 8 December 2023.

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