Johann Krog, MPP
DA KZN Spokesperson on Economic Development
The Democratic Alliance in KwaZulu-Natal demands that ECOD MEC, Mike Mabuyakhulu, fire the Ithala Board after it was revealed that members signed over R83million for the failed Dolphin Whispers development, in direct contravention of the development bank’s standard operating procedures.
According to a report, Ithala’s maximum loan amount is R10 million. Yet the Board made a decision to hand over eight times this amount, without surety from the majority shareholder, believed to be an agent for Durban businessman, Jay Singh.
A subsequent audit report has also revealed serious allegations against Board members, including conflict of interest and collusion.
The DA is appalled by this.
Claims that Ithala exists purely as a money-lending organisation for the politically connected can no longer be ignored. Nor can ongoing speculation that Ithala’s generosity is directly linked to kick-backs to the ANC in KwaZulu-Natal.
The MEC can no longer remain silent. We expect him to act and dismiss the entire Ithala Board.