"Our stakeholders, which include partners, sponsors, creditors and the public [are] assured that the RTMC is in a better position now than it was in the past," acting chief executive Collins Letsoalo said in a statement.
"Austerity measures have also been implemented to ensure cost control and future financial sustainability of the entity. For all intents and purposes the corporation remains fully functional."
Letsoalo said the insolvency meant the agency's liabilities exceeded its assets.
"The RTMC is technically insolvent... this is as a result of approximately R200 million worth of e-Natis [electronic national administration traffic information system] transaction fees that belong to the national revenue fund which was utilised irregularly by the previous management," he said.
"The matter is currently being regularised through a condonation and write-off process by the Minister of Finance [Pravin Gordhan]."
The Independent Online reported on Wednesday (8 February 2012) the agency was "teetering on the brink of financial collapse".
Letsoalo told the National Assembly's transport committee on Tuesday the organisation was insolvent after the National Treasury turned down a request for additional funding.
Its financial crisis was reportedly caused by previous managers and the board, who presided over chronic mismanagement and gross irregularities that culminated in unauthorised spending of about R600m.
According to a report by a task team appointed to investigate the agency, millions were spent on luxury cars, unused office space and unnecessary auditing contracts, it was reported.
The agency, which reports to the transport minister, is responsible for co-ordination of traffic management in the country.
Source: Sapa
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
