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Inside TrackSexwale's department spends millions on hotels and dining |
As Sea Kay sits on the precipice, but is he to blame?
In a shock admission to Moneyweb on Friday, Sea Kay (JSE:SKY), rocked by infighting, and cancelled projects, said it will close, unless government pays up, but is government entirely to blame?
In its latest set of financial results the group revealed a company in shambles.
- It stated that the Gauteng Department of Housing failed to pay it from November 2008 to May 2009, dampening cash flow.
- A financial dispute had arisen between it and the implementing agent on the N2 Gateway project in the Cape.
- It revealed it had lost the Cosmo City project in Gauteng due to "internal management issues".
- It said it had "poorly managed" its Pennyville project in Gauteng and sacked its CEO, Corne Kruger.
Since then things have gone from bad to worse. Executive director Gerry Holtzhausen told us on Friday: "The reality is that government is just not paying. We've issued summons for R133m in the Western Cape and R100m in Gauteng." The debt has been outstanding for many months.
Due to cash-flow issues it was forced to take on R128m debt from the National Housing Financing Corporation (NHFC), which it can not repay until minister of Human Settlements, Tokyo Sexwale's department pays up.
Sea Kay has had to cede its R350m debtor's book to the NHFC as surety for its R128m debt. This means that Sea Kay has no access to the book while the debt is outstanding and may be placed into liquidation.
All that is required to sort out the situation is a "call from Tokyo" to ask the department to pay up or NHFC to hold back on its demands, says Holtzhausen.
But it seems in the past seven months officials of the Human Settlements department have had other things on their minds. According to Timeslive, they have spent more than R7.4m, or R72 000 a day, on hotel accommodation, restaurants and travel.
Perhaps it is time to pay Sea Kay and spend less on dining, while Sea Kay takes responsibly for the R31m loss on the Cosmo City project and the poor management of its Pennyville project.
Write to Monique Vanek: monique@moneyweb.co.za
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COMMENTS
Of this R72000 per day, how much did the well-travelled Tokyo spend for his night in a shack?
This is not a trick question.
I bet you a few dimes to a dollar that he put in an expense claim.
by Cassandra on November 08 2009, 21:27
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so all that moneyweb jounos do is to read other papers and report what was said there to us like we can't visit thetimes/mg?
and they're the first to point everyone else's incometence? talk about competence.
it must be their boss . .more
by sies on November 09 2009, 00:24
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At first I will commend him for taking action against poor RDP houses but on a second thouhts no, I guess theres is a long way to go before he can adress the plight of the poor. My take to this matter is he should just focus he energy on buliding . .more
by Vusumuzi on November 09 2009, 10:38
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Whats new, another coach on the gravy express, did Tokyo not benefit enough from his affilliations with the ruling party that he needs to come milk some more. One more coach to be fed with zero accomplishments.
by Gravy Express on November 09 2009, 19:56
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is that they think everyone is as as stupid as they are
by william on November 10 2009, 08:31
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until what year r they going to be building houses because the poor people will only get more. eventually we will have the whole of south africa filled with RDP houses. give them work, to build there own houses
by .. on November 11 2009, 06:58
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