An explosive letter on 17 Oct 2019 from the current @necsa_Ltd board to the Minerals & Energy Parliamentary Committee reveals new information relating to misuse of Necsa funds by the former Necsa board under fired former chairman Kelvin Kemm & suspended CEO Phumzile Tshelane. 
@necsa_Ltd The letter reveals that SA nuclear corporation @necsa_Ltd has been making massive operating losses since 2014, which have deteriorated over the years, & has resulted in various ring-fenced funds being irregularly used to meet operating expenses, including salaries.
@necsa_Ltd For example, the letter says that in FY 2018/19, @necsa_Ltd raided R268m from the Safari LEU Spent Fuel Waste Disposal Fund meant for future disposal of spent nuclear fuel waste, in order to meet operating costs.
@necsa_Ltd And that in FY 2017/18, @necsa_Ltd borrowed R58,5m from its subsidiary NTP Radioisotopes which was to be repaid in 2019, but was subsequently unilaterally extended to 2021 when it became clear that Necsa could not afford to repay NTP Radioisotopes.
@necsa_Ltd And that in FY2016/17, @necsa_Ltd used R100m of investments of Safari LEU Spent Fuel Waste Disposal Fund as security for a R100m overdraft facility from @Nedbank, which the bank later withdrew due to absence of a turnaround strategy to address Necsa's strained financial position.
@necsa_Ltd @Nedbank This, according to the letter, then forced @necsa_Ltd to raid R100m from the Safari LEU Spent Fuel Waste Disposal Fund to meet operating costs, and this R100m was later repaid to the Fund from government grant funding.
@necsa_Ltd @Nedbank The effect of the unconventional funding interventions in previous years, says the letter, was that about R445m of ring-fenced funds were used for operations, despite being meant for other purposes, thus negatively effecting @necsa_Ltd's liquidity and solvency.
@necsa_Ltd @Nedbank The letter further says that @necsa_Ltd has been technically bankrupt since about 2016, and has survived using ring-fenced funds, which has cumulatively had an impact on the going concern status on the entity – a challenge which the current board is now faced with.
@necsa_Ltd @Nedbank One small correction: Mr Phumzile Tshelane is no longer the suspended former CEO of @necsa_Ltd as he has since been fired following a disciplinary inquiry and hearing.
