Serious questions have been raised about governance, workplace culture, and internal controls at the Automotive Industry Development Centre Eastern Cape (AIDC-EC), following a series of internal complaints submitted to the AIDC board late last year.
The Democratic Alliance has seen several internal documents addressed to the AIDC board, submitted by anonymous concerned staff members. These documents raise a number of allegations, including those directed at the CEO, Thabo Shenxane, whose contract has recently been extended for a further five-year term, as well as broader claims regarding governance, workplace culture, and operational matters.
When allegations of governance weaknesses or internal dysfunction arise at a key development agency, workers, communities, and the broader provincial economy ultimately bear the consequences if the issues are not properly addressed.
Separate allegations have also been raised in relation to the East London office, including allegations that its operational status was misrepresented to the board, that the office is not functioning as presented, and that staffing and office arrangements may have been structured for personal convenience rather than organisational need.
The Eastern Cape’s automotive sector remains one of the province’s most critical economic engines. It supports thousands of jobs, drives investment growth, and underpins a significant portion of the province’s export economy. At a time when the global automotive industry is transitioning from internal combustion engine vehicles to electric vehicles, the Eastern Cape must maintain policy certainty, institutional stability, and effective implementation to remain competitive.
The province, through AIDC-EC, is currently advancing an Electric Vehicle Strategy and Roadmap to secure the future of automotive manufacturing and mobility in the Eastern Cape, including addressing infrastructure gaps such as public EV charging and positioning the province as EV-ready.
This work requires focused leadership, sound governance, and institutions that inspire confidence among workers, investors, and industry partners, which underscores the need for clarity and transparency around institutional arrangements and governance practices at AIDC-EC.
Responses from the AIDC-EC board indicate that internal processes were initiated to consider concerns raised by staff, and that internal audit and related reviews were underway. However, there is currently no publicly available conclusion, report, or confirmed outcome from those processes.
I will be submitting written parliamentary questions to the MEC for Economic Development, Environmental Affairs and Tourism, Nonkqubela Pieters, to establish whether the internal processes initiated by the AIDC board have been finalised, what findings or recommendations were made, and what steps have been taken to ensure proper governance, accountability, transparency, and value for money at the entity.
The DA will continue to work to ensure that public institutions function as they should, that concerns raised through formal channels are properly addressed, and that transparency and public confidence in key development agencies are upheld. The long-term sustainability and competitiveness of the Eastern Cape’s automotive sector depend on sound policy implementation, institutional stability, and clear accountability.