Obed Bapela calls for system to prevent abuse of mining royalties
SOUTH Africa plans to reform how local communities manage and spend mining royalties after a corruption probe found that a $44m fund bankrolled by Lonmin had been exhausted.Almost all the money received by the Bapo Ba Mogale community during the past 20 years had been spent, with the biggest amount used to build a palace for a tribal leader, Public Protector Thuli Madonsela said on July 5. The palace cost at least R80m, despite an initial budget of R20m.READ THIS: Hope for battle-weary mining community"We need to develop a policy mechanism that can prevent it from recurring anywhere else whilst also dealing with the remedies of what has happened with the Bapo," Co-operative Governance and Traditional Affairs Deputy Minister Obed Bapela said in an interview.No oversightThe complexity and lack of transparency around such arrangements means residents often do not see the benefits of mining income, leading to protests. In the case of the Bapo Ba Mogale, there had been no oversight struc...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.