31 October 2009

The IFP has questioned the sudden departure of Manana Nhlanhla, chairperson of the Ithala Group, announced earlier today jointly by Nhlanhla herself and KwaZulu-Natal MEC for Economic Development and Tourism Mike Mabuyakhulu.

“Nhlanhla’s sudden departure amid mounting crisis at Ithala is as suspicious as her reasons for this move are unconvincing,” said IFP KwaZulu-Natal finance and public accounts spokesperson Dr Lionel Mtshali.

In her joint statement with MEC Mabuyakhulu, Nhlanhla cited pursuit of “other business interests” as the reason for her unexpected departure from the Ithala Group.

The IFP wishes to remind the public that Ithala has recently attracted a great deal of bad press as a result of loans awarded to politicians and their relatives. “Tens of millions of rand worth of Ithala loans are currently irrecoverable due to the bank’s laxity in implementing its own lending rules,” said Dr Mtshali.

The IFP contends that Nhlanhla’s sudden departure is reminiscent of the circumstances which surrounded the quitting of Ithala bank’s previous CEO Ike Nxedlana.

“There is little doubt that Nxedlana was forced to go when it appeared to the ruling party that he was digging too deep to uncover irregularities at the embattled public entity,” said Dr Mtshali.

Nxedlana’s departure made way for former head of the provincial Treasury Sipho Shabalala who is currently under investigation by police for allegedly soliciting a R1-million donation for the ANC.

“Shabalala’s entry into Ithala put an immediate stop to probes into irregular lending practices at the banking institution and paved the way for new scandals,” said Dr Mtshali.

The IFP pledges to interrogate the matter of Nhlanhla’s sudden departure in the provincial Legislature.

Contact: Dr Lionel Mtshali, 078 302 0929