NEWS
22/06/2018 06:01 SAST | Updated 22/06/2018 06:01 SAST

SOE Execs, Political Connected Businessmen Listed As IDC Beneficiaries

The IDC's black industrialists' programme is funding an array of established businessmen, executives and the politically connected.

IDC

Former and present executives from state-owned enterprises, ANC bigwigs and established millionaires. These are the beneficiaries of the Industrial Development Corporation's (IDC) funds, according to reports.

This week, The Star reported that the beneficiaries of over R9-billion in loans awarded to "black industrialists" include: KwaZulu-Natal health MEC Dr Sibongiseni Dhlomo, former spy boss Gibson Njenje, Massmart chairperson Kuseni Dlamini, as well as Black Business Council founding member Sandile Zungu.

Over 128 companies were reportedly funded from April to May 2018. The Black Industrialists' Programme "created or saved" over 10,000 jobs in that time period, according to the IDC.

Business Day reported on Friday that the number of former and present executives from SOEs receiving IDC funds was indicative of the small pool of executives in South Africa, but also of the network of executives in the state sector.

From April 2017 to April 2018, the IDC reportedly loaned over R8-billion to 128 black industrialists.

The names reportedly include former deputy finance minister Sfiso Buthelezi. His mining venture, Ledjadja Coal, in which Eskom chairperson Jabu Mabuza is also involved, reportedly received R1-billion loan.

Vusumazi Khanyile's name also appears. The businessman was reportedly head of the ANC's finances in the 1990s.

IDC divisional executive for corporate affairs Zama Luthuli reportedly said that politically connected persons were not excluded from the programme but were subjected to strict checks.

But SA Federations of Trade Unions general secretary Zwelinzima Vavi reportedly told The Star that the fund was hijacking broad-based economic empowerment and merely funding the black elite.

The IDC has previously been criticised for the political nature of its loans, and for funding the Gupta's Oakbay Resources. According to Fin24, last year, the IDC went after the Guptas for a R293-million loan after allegations surfaced about share price manipulation. The Financial Service Board reportedly uncovered that a Singaporean company funded by the Guptas bought shares in Oakbay just before it listed on the Johannesburg Stock Exchange to boost the share price.