The Gauteng government plans to merge the controversial Blue IQ agency with two other entities to cut down on overlapping mandates.
Firoz Cachalia, MEC for economic development in Gauteng, says Blue IQ, the Gauteng Enterprise Development Agency and the Gauteng Enterprise Agency will be merged into one unit to prevent duplication of the entities' mandates. Duplicating duties resulted in wasted expenditure, he adds.
Cachalia was speaking on 702 this morning, after the revelation this week that Blue IQ board members had been paid thousands to attend meetings.
Jack Bloom, the Democratic Alliance's spokesman on corruption in Gauteng, had asked Cachalia how much Blue IQ board members are paid.
Cachalia responded in the Gauteng Legislature that the Blue IQ chairman receives R25 000 per meeting, and ordinary board members get R20 000 a meeting. In addition, board members also get paid R7 500 for special meetings, and R937.50 an hour for “consultation” meetings.
Answers needed
This morning, he told 702 that the board has to answer for its failure to act on queries raised by the auditor-general around financial mismanagement.
In the latest available annual report, the AG indicated there was insufficient evidence for audit purposes; unauthorised, irregular and fruitless expenditure; and the agency did not comply with legislative, regulatory and internal controls.
Cachalia this week said Gauteng agencies “demonstrated a significant lack of good corporate governance, which points to systemic failure of the executive teams and boards of directors”.
However, this morning, he commended the board during the radio interview for the steps it had taken during the past year to comply with legislation such as the Public Finance Management Act. The Star also quoted Cachalia as saying: “I wish to state that I have full confidence in the members of the board of Blue IQ and in the competence of the board.”
Cachalia conceded that, despite several key projects such as the Gautrain coming to fruition, the agency had suffered from a lack of focus over the past few years.
Blue IQ, an agency of the Gauteng Economic Development Department, was established in 2003 to spur economic growth in key sectors in the province, including business tourism, high value-added manufacturing, logistics and ICT.
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