The Board and Management of the Free State Development Corporation (FDC) are growing increasingly concerned about clients who continue to neglect their financial obligations. Mounting bad debt are placing immense pressure on the Corporation’s ability to effectively fulfill its mandate of supporting and developing MSME (Micro, Small, Medium Enterprises) through both financial and non-financial assistance.
The FDC currently serves over 2,315 rental clients and more than 1,221 loan clients, playing a vital role in driving economic growth and facilitating job creation across the Free State. However, a significant number of these clients are in arrears, straining the Corporation’s cash flow and limiting its capacity to extend support to more businesses in need.
In response, the Corporation has intensified its “Call-to-Action” Debt Collection Drive, urging all defaulting clients to settle their outstanding accounts immediately. Those who fail to comply will face strict enforcement measures, including legal action and possible eviction from FDC properties.
To strengthen this effort, the FDC has established a Collection Crack Team mandated to ensure compliance. This team directly engages with clients in arrears—delivering foreclosure notices, collecting outstanding payments, and addressing illegal occupation and subletting of FDC properties.
Already, 42 tenants have been served with eviction notices and risk losing access to their premises should they fail to pay or make suitable arrangements with the Corporation.
The FDC’s message is clear: pay up or face the consequences. However, the Corporation remains committed to engaging with clients who demonstrate willingness to cooperate. Those who approach the FDC to make realistic payment arrangements will find the Corporation ready to negotiate a workable way forward.
While some clients often raise concerns about issues such as security within industrial parks, labour costs, and competition from neighbouring regions like Lesotho and Eswatini, the FDC wishes to clarify that its security services cover the parks themselves, while clients remain responsible for the safety and maintenance of their individual premises.
Ultimately, what the FDC seeks from its clients is accountability and commitment. The Corporation encourages all tenants and borrowers to show good faith by coming forward to make the necessary arrangements. Doing so will ensure a constructive relationship between the FDC and its clients—one that supports business continuity, promotes growth, and strengthens the province’s overall economic resilience.
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