Staff reporter

Right to Justice, a prominent non-governmental organisation advocating for accountability and transparency, has called for an urgent and formal investigation into the leadership of David Mohale, the chairman of the Free State Development Corporation (FDC).

Mohale holds a BA a Master of Management and a Doctor of Literature and Philosophy. He has worked in the local government sphere; firstly, as Chief of Staff at Masilonyana Local Municipality in the Free State, as Head of office in the office of the Mayor as Senior Manager in the Office of the Speaker and Mathjabeng Local Municipality.

The NGO has highlighted what it describes as the disastrous performance of the corporation under his stewardship, urging both the Member of the Executive Council (MEC) and the Premier to launch an independent inquiry to assess his role and the broader governance issues within the FDC.

The Free State Development Corporation, once a beacon of economic support for local businesses, has come under heavy scrutiny following a series of alleged mismanagement issues during Mohale's tenure. Right to Justice has been vocal in expressing its concerns, particularly concerning the FDC’s failure to fulfil its mandate of stimulating economic growth through sustainable financial services.

"The FDC was created to uplift local businesses and provide essential financial support, but under Mohale’s leadership, it has failed miserably in delivering on these promises. Instead, it has become a symbol of inefficiency and neglect," Siphesihle Jele of Right to Justice stated.

The organisation highlighted several critical issues, ranging from financial mismanagement to the lack of accountability within the corporation. Allegations of malfeasance, including the misappropriation of funds, have been raised repeatedly by both insiders and external observers. "It is shocking to see that, over the years, the FDC has been a playground for financial mismanagement. Funds that were meant to support local businesses were instead diverted for personal gain. We need to know where these funds went, and Mohale must be held accountable for this," Jele said.

The FDC’s failure to properly manage the funds allocated to small and medium enterprises (SMEs) has been one of the most damaging aspects of its collapse. Numerous reports indicate that funds promised to businesses were either delayed or never disbursed at all. "The very businesses that rely on the FDC for financial aid have been left stranded, unable to access the resources they need to grow," the Right to Justice spokesperson continued. "This has had a devastating impact on the local economy, which is already struggling due to broader global economic challenges."

One of the most concerning issues is the longstanding allegations of corruption and nepotism within the FDC. There have been repeated reports that contracts and loans were awarded to companies with connections to FDC leadership, a practice that has not only undermined public trust but also harmed fair competition. "Under Mohale’s watch, we have seen a disturbing pattern of favouritism and cronyism that has led to resources being misallocated to individuals with no experience or capacity to manage these funds properly," Jele said.

In addition to these financial concerns, the FDC has faced criticism for its lack of transparency and inefficiency in its operations. Numerous development projects have been delayed for years, and many have never materialized. The FDC’s inability to implement projects on time has left many businesses and communities frustrated and disillusioned. “The FDC is supposed to be a catalyst for development, but instead, it has become a roadblock. It is time to investigate how it has fallen so far from its original mission,” Right to Justice remarked.

The NGO has called on the MEC and the Premier to conduct a formal investigation into Mohale's leadership, arguing that such an inquiry is essential to restoring public confidence in the FDC and its operations. "It is time for accountability. The people deserve answers, and we believe an independent investigation will uncover the extent of the mismanagement, malfeasance, and negligence that has taken place under Mohale's leadership," Jele said.