Minister Molewa clarifies issues raised in preliminary report on REDISA and Kusaga Taka Consulting

03 November 2017

The Minister of Environmental Affairs, Dr Edna Molewa, wishes to clarify her position regarding a preliminary forensic report into the trade, dealings and affairs of the Recycling and Economic Development Initiative of South Africa (REDISA) and Kusaga Taka Consulting (Pty) Ltd (KTC), the management company of REDISA.

In June 2017 the Minister of Environmental Affairs approached the High Court of South Africa, Western Cape Division, Cape Town, to liquidate REDISA and KTC due to her concerns about the misappropriation of the public funds previously collected by REDISA, as well as the lack of proper governance and accountability in the administration of the Integrated Industry Waste Tyre Management Plan (IIWTMP).

Following the granting of a provisional liquidation order by the High Court of South Africa, Western Cape Division, Cape Town, the Master of the High Court appointed provisional liquidators. The provisional liquidators commissioned their own forensic investigation into REDISA and KTC by appointing Accountants at Law (A@L).

The Minister’s concerns regarding misappropriation of public funds, governance and accountability arose from the review of REDISA commissioned by the Department of Environmental Affairs which was subsequently verified by auditors Ernst & Young. These concerns were further substantiated by the A@L preliminary report and bolstered the Minister’s case on corporate governance and company law transgressions at REDISA and KTC, and it was on this basis that it formed part of the Minister’s court application.

Although A@L reports directly to the provisional liquidators, the Minister would urge that all allegedly implicated individuals be afforded an opportunity to fully respond to the allegations raised in the A@L preliminary report prior to its finalisation.

On 15 September 2017, the High Court of South Africa, Western Cape Division, Cape Town, granted orders for the final liquidation of REDISA and KTC. The final liquidators have yet to be appointed and the investigation into REDISA and KTC’s trade, affairs and dealings will be finalised when the final liquidators convene a formal enquiry. The formal enquiry will provide an opportunity for the Directors, as well as all individuals that may be allegedly implicated in the preliminary report, to respond.

The Minister requests members of the public and the media to avoid speculation and allow the ongoing investigation to run its course.

For media queries, contact:
Albi Modise
Cell: +27 83490 2871