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Sawit now in trouble with parliament too 8 November 2007

Scopa might have to subpoena Wine Trust management


Already in financial trouble and apparently unwilling to explain, the management of the SA Wine Industry Trust (Sawit) is now in hot water with Parliament's Standing Committee on Public Accounts (Scopa). Playing hard ball by refusing to respond to an invitation to brief Scopa in questioning the oversight committee’s legal imperative, Sawit has now irked the financial watchdog.

Sapa reports that Scopa chairman Themba Godi said they will write them another letter, ‘bearing in mind we have the power to subpoena them’.

Sawit’s financial woes and management of both it and its public image is increasingly becoming an embarrassment for the wine industry. Local daily Die Burger has earlier reported about irregularities and oddities in its financial report, which has mostly been kept under wraps.

Sawit was founded in 1999 to promote various aspects of the local industry when the KWV agreed to pay the trust R368-million over ten years. The agreement was terminated earlier and settled, but problems surfaced last year when Sawit was forced to recall a widely-questioned loan of R135-million to Phetogo, the black economic empowerment consortium that bought into KWV. It appears that Sawit is not able to meet financial undertakings for the current year,