Politicians cash in on industrial deals
STATE-owned development financier the Industrial Development Corporation (IDC) has named KwaZulu-Natal Health MEC Dr Sibongiseni Dhlomo among the prominent persons involved in a mining deal worth nearly R1.56 billion.
Dhlomo is among several wealthy South Africans who have benefited from the government’s Black Industrialist Programme.
A list of beneficiaries obtained by Independent Media shows that Dhlomo, former spy boss Gibson Njenje, Massmart chairperson Kuseni Dlamini, retired former deputy chief justice Dikgang Moseneke’s brother Tiego Moseneke, Black Business Council (BBC) founding member Sandile Zungu, Lily Mine’s new owner Fred Arendse, and fashion designer Laduma Ngxokolo scored multimillion-rand deals from the IDC, which administers the programme.
In the period between April last year and May 25 of this year, the IDC funded over 128 companies in deals worth over R9.1bn.
Zama Luthuli, the IDC’s corporate affairs divisional executive, said the Black Industrialist Programme created or saved 10 512 jobs last year.
The majority of the companies (49) were in Gauteng while KwaZulu-Natal and the Eastern Cape had 15 and 13, respectively, in the 2017/18 financial year.
According to the documents, the IDC’s release of the list of beneficiaries is in line with its decision to disclose all its business partners and beneficiaries of funding from April last year.
Dhlomo is listed among the persons in the Project Libra NewCo, whose shareholders include the IDC, Seriti Resources and CoalZar, which South Africa’s pre-eminent development finance institution granted a R1.259bn loan in November, according to the list.
Yesterday, Dhlomo denied any knowledge of Project Libra NewCo, Seriti Resources and CoalZar, saying anyone could have included his name in the list.
Other persons involved in the deal include top businessman Zungu, SAA chairperson JB Magwaza, former ANC head of finance Vusi Khanyile, businesswoman Dr Anna Mokgokong and her husband Pius Mokgokong.
Smile Telecoms Holdings, which operates wireless internet in Nigeria, Tanzania, and Uganda and was founded by former SABC interim chairperson Irene Charnley, received more than R516 million through the programme a year ago
In March, Zungu also received R35m for Elgin Engineering, for which he paid R50m to save it in 2016 after being placed under business rescue a year earlier.
Dlamini is identified as the black industrialist involved in Dimako Transformers, which received R248m through the programme while Arendse took over Lily Mine’s ownership with the help of a R200m loan from the IDC’s Black Industrialists Programme.
Ex-National Union of Metalworkers of SA president Cedric Gina, who is now general secretary of the breakaway Cosatu affiliate, the Liberated Metalworkers Union of SA, is identified as one of politically exposed persons in Rainwood Trading with former Chamber of Mines chief executive Bheki Sibiya. Rainwood Trading received nearly R145m from the IDC in March. Gina and Zungu did not respond to requests for comment.
BETWEEN APRIL LAST YEAR AND MAY 25 OF THIS YEAR THE IDC FUNDED OVER 128 COMPANIES IN DEALS WORTH OVER R9.1 BILLION