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MPUMALANGA Economic Empowerment Commission (MEEC) chief executive Ernest Khosa has resigned ahead of the release of a damning forensic audit into systematic corruption and loan irregularities at his embattled parastatal.

Khosa's sudden resignation follows the unceremonious axing of his political benefactor, Mpumalanga economic development MEC Jacob Mabena, on Monday. (See sidebar story.)

The announcement also appears to pre-empt the scheduled release of PriceWaterhouseCoopers' audit into widespread systematic fraud, corruption, and mismanagement at the MEEC.

The audit examines Khosa's jet-setting lifestyle over the past six years, as well as his role in facilitating a string of irregular multi-million-rand loans to MEEC board members and even larger contracts to companies linked with senior MEEC managers.

Khosa yesterday refused to discuss his resignation, but said in a terse statement that he was not "jumping ship" ahead of the release of the report.

"The PWC forensic investigation is the least of my concerns. I will be cleared.

"What concerns me is that the MEEC, as an institution, cannot afford such negative publicity," he insisted.

Khosa's contracted image consultant, Dominic Ntsele, added that the shake-up was directly prompted by City Press revelations and that Khosa would not be the only senior MEEC figure to leave.

"This issue will not go away. We will see a lot more people go, including board members. They have not formally handed in their resignation yet, so I cannot say anything more," said Ntsele.

"(Khosa) believes he has become a hindrance, he believes he is too tainted to continue.

"There are all these rumours about his impending arrest, or firing, and as a person who likes (respect) he just could not continue wondering what people might be thinking."
   MEEC chairperson Sylvester Sithole would only say yesterday that he had accepted Khosa's resignation, and that further details would be released either today or later in the week.

"Khosa has elected to leave the MEEC following months of negative publicity. (He) felt that because the bulk of the media attention was directed at him personally, it had an adverse effect on the functioning and public image of the MEEC, and that he should go," said Sithole.

The MEEC board will, Sithole added, now focus on ensuring stability and improving its management.

However, that may be extremely difficult. Leaked PWC investigation reports and affidavits appear to confirm that senior board members repeatedly benefited from irregular multi-million-rand loans and failed to repay a cent.

Affidavits confirm Khosa's central role in securing a R2,8 million grant for board deputy chair and South Africa's only female armaments manufacturer, Nora Fakude-Nkuna, by claiming it was for her daughter's Interstate Clearing 056 vehicle dealership.

The general manager at Fakude-Nkuna's holding company, Bohlabela Wheels, Cobus Vosloo, stated,however, that she was in fact chairperson of Interstate Clearing and at least two other companies that received additional MEEC loans totalling another R1,2 million.

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