MIDDELBURG – The Mpumalanga Stainless Initiative (MSI) was given until 16 July to submit a detailed financial report after the Mpumalanga Legislature's Portfolio Committee on Economic Development raised concerns over missing financial and operational information during an oversight visit on 10 July.
The committee warned that it would recommend a Special Investigating Unit (SIU) probe if MSI and the Department of Economic Development and Tourism (DEDT) fail to provide the requested information within the deadline.
“If the company and department do not provide the required information, the committee will request the SIU to investigate the company's finances,” committee chairperson Lucky Mbuyane said.
Although the committee acknowledged MSI's growth and contribution to job creation, Mbuyane said key questions relating to the entity's finances, operations and the role of Steve Tshwete Local Municipality remained unanswered.
MSI, a black-owned provincial government entity based in Steve Tshwete Local Municipality, currently employs 222 people and provides services to international companies and local mining operations.
Centre manager Prince Nkosi told the committee that the organisation had recorded steady financial growth.
“Looking at our financial position, there has been positive movement. While the growth is not as much as we had initially targeted, it is heading in the right direction. Our previous financials reflect a 40% growth compared to the prior period.”
Nkosi said MSI is shifting its focus towards increasing revenue while maintaining operational standards. He added that a detailed report on employment figures would be submitted to the committee but confirmed that "a significant number of jobs have been created over the last five years."
The committee also heard that MSI runs incubation and engineering skills development programmes. Steve Tshwete Local Municipality has allocated the entity five hectares of land to build its own facilities and reduce rental costs.
MSI works with Steve Tshwete Local Municipality, Nkangala TVET College, the National Youth Development Agency (NYDA), the Department of Trade, Industry and Competition (the dtic), and the Department of Economic Development and Tourism.
DEDT Head of Department Immy Serakalala said the department would meet the committee's deadline.
“Most of the issues raised by the committee are issues that we do have answers to. We have that information readily available, so we will definitely abide by that deadline.”
Serakalala said the department remained committed to strengthening the incubator and planned to establish similar facilities in other municipalities.
“This incubator may be located in Steve Tshwete, but it is there to serve the people of the province holistically. We are planning to establish similar branches in other municipalities so that Mpumalanga remains a leading province in steel fabrication.”
The committee requested written details on the number of jobs created, SMMEs supported, and businesses owned by youth, women and persons with disabilities before adopting the oversight report.
Mbuyane said the committee would only adopt the report once it had received all the outstanding financial and operational information needed to exercise proper oversight over public funds invested in the project.
He also urged the department and the municipality to ensure officials are adequately prepared for future oversight visits.
