By Emily Setona
QWAQWA – The Free State Development Corporation (FDC) is undergoing a major transformation in its quest to correct past missteps and position itself as a driving force for economic development and job creation in the province.
In an exclusive interview with The Guard, FDC CEO Kgotso Tau revealed the extent of the challenges the corporation has faced, the steps being taken to clean up corruption, and the path forward in restoring public trust. He said this during his visit to Qwaqwa while accompanying the Free State MEC of DESTEA and Finance on 20 March for the launch of the Agrimark project.
Rebuilding from a troubled past
For years, the FDC has been plagued by poor decisions, corruption, and financial mismanagement that severely weakened its ability to fulfill its mandate. Established to support businesses, stimulate local industries, and create employment, the corporation instead found itself caught in a web of scandals that eroded its credibility.
“We inherited a system where corruption was rampant, and financial decisions were made without considering the long-term impact on the people of the Free State,” Tau explained. “The result was a weakened institution that could not adequately support economic development.”
However, under the guidance of the MEC and the FDC board, significant reforms have been implemented to turn the organization around. A key indicator of progress has been the improvement in audit outcomes, moving away from the dismal financial reports of the past to a more stable and transparent system.
Zero tolerance for corruption
One of the most pressing issues within the FDC has been corruption. Tau did not mince words when addressing the severity of the problem. “People abused their positions to enrich themselves at the expense of the province. This will not be tolerated,” he stated.
The crackdown on corruption has already led to arrests and suspensions of individuals implicated in fraudulent activities. Legal actions have been initiated to ensure that those responsible are held accountable, both internally and through the courts.
“The FDC is no longer a playground for dishonest individuals. We have implemented a zero-tolerance policy, and we are actively working to recover misappropriated funds,” Tau affirmed.
Cracking down on illegal property use
Another major issue that has hindered the FDC’s operations is the illegal occupation and subletting of its properties. The corporation owns a number of offices and industrial spaces meant for businesses and entrepreneurs, but over the years, some individuals have taken advantage of loopholes to either occupy these properties illegally or sublet them for personal gain.
“This practice has caused significant losses for the FDC and prevented genuine businesses from accessing necessary resources,” Tau said. “We are actively addressing these illegal activities and ensuring that FDC properties serve their intended purpose – to support economic growth, not private pockets.”
Enforcing financial responsibility
Financial mismanagement has been another critical issue, particularly in the area of loan repayments and contractual obligations. Many businesses and individuals who received financial support from the FDC have failed to meet their repayment commitments, placing additional strain on the corporation’s resources.
FDC CEO Kgotso Tau.
Tau emphasized that the FDC is now taking proactive steps to recover outstanding debts and ensure compliance with financial agreements. “We are implementing stricter measures to ensure that those who have benefited from FDC funding pay their dues. This is essential to maintaining the corporation’s financial stability and ensuring that we can continue supporting local businesses.”
Restoring public trust and moving forward
Despite the challenges, Tau remains optimistic about the future of the FDC. The corporation’s leadership is committed to ensuring that it becomes a source of pride for the Free State rather than a symbol of corruption and inefficiency.
“We are not just cleaning up past mistakes; we are building a stronger, more transparent, and accountable institution that will serve the people of the Free State effectively,” Tau said.
As the FDC moves forward with its reform agenda, Tau called on businesses, entrepreneurs, and the community to work together in rebuilding the province’s economy. “The FDC is here to support economic growth, but we need the cooperation of all stakeholders. Let us rebuild together.”
With a new leadership approach and firm action against corruption and mismanagement, the FDC is on the path to restoring its credibility and fulfilling its mission of driving sustainable economic development in the Free State.
One Response
Mr Tau is firm in his decision making. I believe he will turn that institution around. He once worked in that institution in its glory days. I’m quite certain that he’s going to make it work effective and efficient again.