Magashule was next in the firing line. In June 1996 , Lekota axed him
when he reshuffled his cabinet, accusing Magashule of
‘insubordination’. When Matosa and other northerners threatened to
institute a vote of no confidence in Lekota in the provincial legislature,
the ANC’s national leadership was forced to intervene. Steve Tshwete
helped the two factions find some common ground, and Lekota
subsequently reinstated Magashule.^10 However, he was appointed as
MEC for transport, a move that was seen as a demotion.^11
It became increasingly clear that Lekota had initially fired Magashule
over something more dubious than mere insubordination. In July, the
same month in which Magashule was reinstated, Lekota drew attention
to some questionable dealings at the Department of Economic Affairs
and Tourism. Under Magashule’s watch, the department had secretly
set up two Section 21 or non-profit companies without approval from
the executive council or the provincial treasury. The two entities, called
the Free State Investment and Promotion Agency and the Free State
Tourism Company, had received nearly R 6 million from Magashule’s
department. A report by the Free State’s director-general found that the
agencies had made questionable loans to staff members and had also
splurged some of the money on trips abroad and even on pub lunches
and CDs.^12 Lekota suspended five senior officials in Magashule’s
former department, three of whom belonged to Magashule’s ANC
branch.^13 This further fuelled tensions between the two camps.
Magashule’s own fingerprints were on some of the dodgy dealings
involving the department and its agencies. It was alleged that he had
played a role in questionable loans granted by the Free State
Development Corporation to companies associated with or linked to
him. The FDC is the state-owned entity that would later absorb the
nora
(Nora)
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