By Emily Setona
QWAQWA – The Free State Development Corporation (FDC) has intensified its debt collection campaign in a determined effort to restore its financial health, reclaim its role as a key driver of provincial economic growth, and rebuild public confidence.
In an exclusive interview with The Guard, acting Chief Executive Officer Dr Mbulelo Nokwequ said the initiative, launched in the previous financial year, rests on three pillars: stabilizing the FDC’s finances, repositioning the entity as a development catalyst, and restoring stakeholder trust.
“One is to stabilize FDC finances, two, to reposition the FDC as a catalyst for economic development, and three, to rebuild the trust that stakeholders have in the institution,” Dr Nokwequ explained.
Stabilisng FDC finances
Dr Nokwequ said many clients have failed to honour loan and rental agreements, severely undermining the Corporation’s sustainability.
“Our key revenue streams are rentals and loans extended to SMMEs,” he said. “We are conducting a comprehensive review to confirm what properties we have, where they are, and whether they appear on our asset register. We are also updating our lease contract register to ensure all tenants are legally compliant.”
He added that the FDC will act against illegal occupants. “If tenants don’t have valid contracts, they must regularize or vacate. If they have contracts, we are checking whether they are paying and how much they owe,” he said.
Repositioning FDC as a development catalyst
Beyond stabilizing finances, the Corporation is reviewing the value and condition of its properties — including those entangled in legal disputes — to determine which assets can be optimized or disposed of.
To speed up collections, FDC managers conduct monthly “collection drives” across Botshabelo, Thaba Nchu and Phuthaditjhaba to engage clients directly.
“At least once a month, all managers leave their offices to meet clients and enhance collections. Everyone is involved,” said Dr Nokwequ.
He said every rand recovered would be reinvested into the province.
“If the FDC has money, it can fund new business ideas, support SMMEs and drive investment. We must ensure the Corporation is once again at the centre of economic development,” he added.
Rebuilding trust and accountability
The debt recovery campaign, he said, emerged from a joint decision between the FDC board and management after the debt book “spiralled out of control”.
“We are now arresting the situation,” Dr Nokwequ said. “If you occupy FDC property, you must pay.”
The current focus is on industrial parks, with residential tenants next in line.
“Public assets must be respected”
Dr Nokwequ emphasized that the FDC cannot continue offering free occupancy while shouldering costs for electricity and water.
“There’s nothing free that FDC can provide,” he said. “Just like private landlords, we can’t allow people to stay in our properties for free. Public assets must be treated with the same respect as private property.”
He said funds collected will directly benefit the province through reinvestment in development projects and job creation.
“Ultimately, every cent generated from these assets will be channelled back into growing the Free State economy,” he concluded.
ARTICLE SPONSORED BY FDC
