This week the Sunday Times reported in its business section on how companies with close links to Industrial Development Corporation chairman, Wendy Luhabe, had benefitted from loans from the IDC as well as a BEE deal. The article, headed "Lolly rolls in for Luhabe," reported that according to the IDC's 2008 annual report the parastatal had approved two R50m loans to the Women's Private Equity Fund - which Luhabe had founded.
Another company in which Luhabe had an interest, Wiphold, had also apparently benefitted when "IDS subsidiary, Hans Merensky Holdings," effectively handed over 26% of its wood business to black empowerment partners last year. Luhabe denied any conflict of interest, telling the newspaper that "When there is a transaction from Wiphold or the Women's Fund, management will bring that to my attention. The IDC board has a procedure that makes sure that directors who may be involved in a transaction that has to be decided by the board do not get the paperwork for that transaction and they do not participate in the decision- making on that transaction." In its response to the Sunday Times report COSATU stated that "It is simply not good enough for [Luhabe] to say that she had recused herself from board meetings that made decisions involving her companies. It should be illegal for anyone who has a position in a Development Finance Institution - or any company in which they have a interest - to receive any contracts, tenders or any other form of financial benefit from that body. No-one must be allowed to be on a board that allocates money to their own companies." The SACP also expressed its outrage: "People who serve in public institutions" it noted in a statement, "must not behave like parasites on the resources that are supposed to benefit the ordinary workers and the poor of our country... These Luhabe transactions are a further expression of the extent to which BEE has been captured by narrow parasitic elite, using the state for its own self-enrichment." There is a saying that a man who wants to beat a dog will always find a stick. And clearly Luhabe has made herself a target by backing her husband, former Gauteng Premier Mbhazima Shilowa, and his efforts to get an ANC breakaway movement off the ground. This story seems to be a slightly more robust stick than that initially picked up by the ANC Youth League several days ago but the motive is similar. What is rather curious though is that the IDC's involvement with the WPEF has been known for a rather long time. The Fund was launched in mid February 2003. The Sunday Times even reported on it in the Business Times under the heading "Sisters are knuckling down and doing it for themselves." Almost all the facts now causing controversy were reported on then. Since Malema arrived, cleaners are working hard Confidentiality & Disclaimer This e-mail transmission, including the attachments (hereinafter collectively referred to as this “e-mail”) contains information that is confidential and subject to legal privilege intended only for use by the individual or entity to which it is originally addressed. Access by anyone else is unauthorised. If you are not the intended recipient or a person responsible for delivering this e-mail to the intended recipient, be advised that you have received this e-mail in error and you must delete this e-mail in its entirety immediately. Any unauthorised disclosure, dissemination, reliance, use, interception, alteration, tampering or any other form of corruption of this e-mail or any part hereof is strictly forbidden. E-mails cannot be guaranteed to be secure or free of errors or viruses. As such, we advise you to carry out your own virus checks, as neither this entity nor the transmitter accept any liability whatsoever, arising from this e-mail or for any consequence of its use or storage. No stated, tacit or implied view, opinion, advice or position of the transmitter necessarily represents that of this entity. If verification of this e-mail is required, please request a hard-copy version on an official letterhead of this entity. Copyright in this e-mail is and remains vested in this entity and/or in the transmitter. This entity fully reserves the right, without notice, to monitor outgoing and incoming e-mail and other transmissions or communications on, in, through or by means of its e-mail and telecommunications systems. --~--~---------~--~----~------------~-------~--~----~ You are subscribed. This footer can help you. Please POST your comments to [email protected] or reply to this message. You can visit the group WEB SITE at http://groups.google.com/group/yclsa-eom-forum for different delivery options, pages, files and membership. To UNSUBSCRIBE, please email [EMAIL PROTECTED] . You don't have to put anything in the "Subject:" field. You don't have to put anything in the message part. All you have to do is to send an e-mail to this address (repeat): [EMAIL PROTECTED] . -~----------~----~----~----~------~----~------~--~---
