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The Eastern Cape Development Corporation (ECDC) has suspended its chief executive officer, Ayanda Wakaba, pending the outcome of a forensic investigation into allegations of gross mismanagement and irregular expenditure totalling more than R100 million.
The decision follows a series of internal audits that raised serious concerns about financial governance at the state-owned development agency. According to provincial government sources, the red flags relate to unauthorised investments, questionable procurement practices, and failures to comply with established financial controls.
The Office of the Premier has confirmed that a forensic probe is under way to determine the full extent of the alleged misconduct and to identify any officials who may be implicated. The Provincial Treasury has stepped in to help stabilise the organisation and ensure that priority projects continue with minimal disruption.
The ECDC, mandated to spur investment, enterprise development and job creation in the Eastern Cape, has faced mounting criticism in recent years over inefficiencies and project delays. Analysts warn the latest scandal may erode investor confidence.
“When institutions like the ECDC are found mishandling funds meant for development, it affects not only the projects but also the livelihoods of thousands of people depending on these programmes,” said Dr Sipho Mkhize, an economic governance expert at Nelson Mandela University.
The R100 million reportedly includes money earmarked for infrastructure and enterprise development initiatives, which may have been diverted or improperly accounted for. In a brief statement, the ECDC said it “remains committed to accountability and transparency” and will appoint an acting CEO while investigations proceed.
The case adds to a growing list of governance challenges at provincial entities as the Eastern Cape government steps up efforts to root out corruption and restore public trust in state institutions.
