MEC for Finance in KwaZulu-Natal, Francois Rodgers has welcomed the SIU probe into Ithala SOC Limited. Picture: KZN Treasury via Twitter
Durban - KwaZulu-Natal MEC for Finance, Francois Rodgers, has welcomed the Special Investigating Unit (SIU) investigation into the affairs of Ithala SOC Limited.
The investigation was authorised by President Cyril Ramaphosa. The probe is set to investigate alleged corruption and fraudulent activity during the awarding of a R34 million tender to IT company Tech Mahindra, which dates back to 2017.
MEC Rodgers believes that the SIU investigation will afford the people of KZN an opportunity to uncover the truth about alleged misdeeds at Ithala.
In a statement, the SIU said the investigation will determine if contract payments adhered to national treasury guidelines and whether the payments were irregular, wasteful, or led to financial losses for the department or state. The SIU will also investigate any unlawful conduct by Ithala employees or officials that may have resulted in improper benefits.
MEC Rodgers stated that he has extensively engaged with the Prudential Authority (PA) of the South African Reserve Bank and Johan Kruger, the Repayment Administrator (RA) who was appointed by the PA.
Through these engagements, MEC Rodgers said he had learned about concerning allegations of fraud, corruption, and maladministration at Ithala.
In September 2024, the MEC requested evidence regarding the alleged criminal activity from the PA and the RA at Ithala however, his request was not acceded to.
MEC Rodgers said: “Some of the concerning allegations at Ithala include politically exposed people and senior Ithala officials ranking among the highest loan holders at the entity, with some of these loans being written off.”
He added that the investigation into the multi-million-rand tender awarded to Tech Mahindra raises important concerns.
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