New ECDC chairman spells out turnaround plan

First priority is to stop the net outflow of cash LEONARD NEILL PROFESSOR WISEMAN Nkhulu is faced with a major challenge. He has been appointed chairman of the Eastern Cape Development Corporation (ECDC) board and charged with turning the organisation from its recent turmoil into a progressive and successful operation once again. Many believe he is the man to do it. A former economic adviser to President Thabo Mbeki, head of the University of the Transkei and a chartered accountant by profession, he is well-equipped to sort out the problems the ECDC has had to confront over the past two years. Dubbed ‘the bridge over troubled waters’, he is equal to the challenge. “My role is more than stabilising the organisation,” he says. “I am faced with turning the ECDC around so that we can deliver to the people of the Eastern Cape. The ECDC has assets worth more than R1 billion, but it has made huge operating losses when it should be earning income from its property investments and interest from loans. My goal is to stop the net outflow of cash and I have to do this by March next year.” It’s a daunting task when taking into account the friction in the organisation between upper management and the board over the past two years. In that time three chairpersons came and went, and CEO Kevin Wakeford resigned twice from his post – the first withdrawn after a plea by the provincial premier. Part of Nkhulu’s plan is to motivate employees to turn assets into income by putting the right systems in place. He is also determined to restore the authority of the new chief executive – to be appointed within the next month – and ensure that all the managers are empowered and their roles clarified. “The past ECDC board often interfered with the duties of the CEO. It is now important that the CEO feels that he is the man in charge. “I am confident that we are going to turn it around. By 2008 I want to see a clean audit book. The ECDC’s audit report has been disqualified for too many years. The property register was not up to date and the loan book wasn’t well managed.” Nkhulu says the focus on SMEs will be maintained, but he will want to see micro-loan services for micro enterprises in the rural areas developed. “The challenge posed by the Eastern Cape is that it is one of the poorest provinces, but it has great potential. It has a wonderful climate and great agricultural possibilities, especially in the timber and forestry industries. We have played a great part in the development of the automotive industry. Now we must move elsewhere and bring greater prosperity to the needy.”