ActionSA calls on Ithala SOC, a state-owned development finance institution, to publicly disclose all outstanding loans granted to politically exposed individuals. South Africans deserve to know whether taxpayer funds have been misused to benefit politicians and their associates.
The strong opposition from various political parties to Ithala’s potential closure, despite serious concerns raised by the Prudential Authority, Financial Sector Conduct Authority, and National Treasury, suggests they are more focused on protecting questionable loans than ensuring accountability and transparency.
Recent media reports reveal that former Minister Zweli Mkhize and his family benefited from Ithala loans, despite falling into arrears without facing default or cancellation. Emerging details suggest that Ithala is yet another failing state institution, potentially heading toward a VBS-style scandal.
According to the Repayment Authority, Ithala is both commercially and technically insolvent, with loans and advances to clients totalling R2.2 billion. These include home loans, vehicle financing, and taxi loans, yet only R100 million has been impaired. Alarmingly, despite raising concerns about the true value of these loans, the Repayment Authority has not been granted full access to scrutinize them.
Based on its limited access, the Authority estimates the realizable value of these loans to be just R1.3 billion, meaning R900 million should be impaired. This raises a critical question: how much of this money has been funnelled to politically connected individuals and entities?
Ithala was meant to provide financial services to the poor and marginalized. Instead, it has become yet another state institution where corruption, incompetence, and waste leave the most vulnerable more marginalized and having to foot the bill. If Ithala collapses, an outcome that appears increasingly likely, the communities and clients who depend on it will be left in financial peril, with their life savings at risk. This is a devastating prospect, particularly given the tragic lessons of the VBS scandal.
ActionSA has consistently sounded the alarm on Ithala’s looming failure, while other parties have turned a blind eye. This week, we introduced our Zero-Tolerance Corruption Bill, which strengthens the Prevention and Combating of Corrupt Activities Act (PRECCA) to close accountability loopholes and expand the definition of corruption. Our legislative action directly tackles the failures exposed by State Capture, ensuring that those who steal from the public are held to account.
We will not allow another VBS-style disaster to unfold on our watch. Ithala must come clean as South Africans deserve the truth.
ActionSA Demands Transparency from Ithala on Loans to Politically Exposed Individuals
ActionSA calls on Ithala SOC, a state-owned development finance institution, to publicly disclose all outstanding loans granted to politically exposed individuals. South Africans deserve to know whether taxpayer funds have been misused to benefit politicians and their associates.
The strong opposition from various political parties to Ithala’s potential closure, despite serious concerns raised by the Prudential Authority, Financial Sector Conduct Authority, and National Treasury, suggests they are more focused on protecting questionable loans than ensuring accountability and transparency.
Recent media reports reveal that former Minister Zweli Mkhize and his family benefited from Ithala loans, despite falling into arrears without facing default or cancellation. Emerging details suggest that Ithala is yet another failing state institution, potentially heading toward a VBS-style scandal.
According to the Repayment Authority, Ithala is both commercially and technically insolvent, with loans and advances to clients totalling R2.2 billion. These include home loans, vehicle financing, and taxi loans, yet only R100 million has been impaired. Alarmingly, despite raising concerns about the true value of these loans, the Repayment Authority has not been granted full access to scrutinize them.
Based on its limited access, the Authority estimates the realizable value of these loans to be just R1.3 billion, meaning R900 million should be impaired. This raises a critical question: how much of this money has been funnelled to politically connected individuals and entities?
Ithala was meant to provide financial services to the poor and marginalized. Instead, it has become yet another state institution where corruption, incompetence, and waste leave the most vulnerable more marginalized and having to foot the bill. If Ithala collapses, an outcome that appears increasingly likely, the communities and clients who depend on it will be left in financial peril, with their life savings at risk. This is a devastating prospect, particularly given the tragic lessons of the VBS scandal.
ActionSA has consistently sounded the alarm on Ithala’s looming failure, while other parties have turned a blind eye. This week, we introduced our Zero-Tolerance Corruption Bill, which strengthens the Prevention and Combating of Corrupt Activities Act (PRECCA) to close accountability loopholes and expand the definition of corruption. Our legislative action directly tackles the failures exposed by State Capture, ensuring that those who steal from the public are held to account.
We will not allow another VBS-style disaster to unfold on our watch. Ithala must come clean as South Africans deserve the truth.