Looking at the books of a large restitution trust. It owes SARS R125 million and can’t pay. Between them, all the entities that own restituted land likely owe SARS, Eskom, water boards and local municipalities several billion rand.
Sustainability is not a big thing in the DRDLR.
Sustainability is not a big thing in the DRDLR.
Most of these entities were just sent on their way, without any capacity or in the case of smaller entities, even the resources to put in place any appropriate governance. Most trustees or CPA committee members have no skills or experience in governance, so they fail.
It would have been so easy for government to do a deal with an audit firm to provide a basic but independent administration and to compel the trusts and CPA’s to use them. To keep records and minutes, prepare budgets, give advice on contracts and control the banking.
But no.
But no.
The nett result is unsustainable debt, looting and instability. The weak governance also leaves the entities ripe to be exploited through corrupt or simply, very one sided and exploitative deals with third parties. The benefits that trickle down to beneficiaries are trivial.
It’s ironic that land activism in SA, of which there is plenty, does not translate into a focus on governance, where the greatest failure has occurred. It is so much easier to shout slogans and go on about historical injustices than it is to get the basics right.
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