I think there is nothing wrong with the issues raised by Cde Smile, regarding the newspaper articles on allegations of corporate corruption and mal-administration against Wendy. The facts reported by Wisani Ngobeni of the Sunday Times newspaper serve to raise eyebrows about the shady activities of the so-called the defenders of democracy and our Constitution. I am saying they are the facts, not allegations, because Wendy herself has confirmed their truthfulness, and only sought to argue the technicality on whether does it amount to corruption or not.
King II Report on Good Corporate Governance defines some of the generally acceptable practices of good corporate governance in South Africa. Amongst some of its key objectives remain, that of ensuring that the corporate sector adheres to principles of good governance such as anti-corruption, accountability, transparency and fairness. We therefore view the reports on Wendy's alleged activities as constituting corruption and maladministration in the context of our understanding of the principles of good governance, as defined in our country's Constitution, King Code II Report, and many other documents. This is even worse considering the fact that IDC is a public institution, executing the public mandate, with the public funds. We therefore do not need to wait for any detailed investigation before we express our disgust towards this issue, particularly in the light of Wendy's role in mobilizing the funds to demobilize the ANC and the movement as a whole. Surely, if the rules and procedures of IDC condone such practices, then they should be pronounced to be against the principles of good governance in our country. And for the record, I think Wisani Ngobeni did quite a good job on this article, because there are very few journalists who would expose people associated with the Shikotas at the moment. Instead of condemning him, we should rather be appreciative of the information his article exposed, and take it further ourselves in ensuring that justice is done on this matter. -----Original Message----- From: [email protected] [mailto:[EMAIL PROTECTED] On Behalf Of Smile Ndlovu Sent: Tuesday, November 18, 2008 3:59 PM To: [email protected] Subject: [YCLSA Discussion] Malema, why Malema? Comrade Vilakazi, This is the kind of responses i expect to receive from Comrades 1. Granted, that might be a shoddy work from the reporter, but we must also understand that journalist do not have to prove anything, but report on a mere allegations received (Just like the article on the first page of Sunday Time about the SAA CEO, nothing was proven, it was just allegations) 2. Considering that a further is investigation warranted, the allegation raised so far a very serious and indicate a possible abuse of power by not only Wendy but the entire board 3. In SA we have the King 11-Corporate Governance, which governs the functions and duties of the directors, BOD, Audit Committee, etc, which its compliance is compulsory to listed companies, public entities and banks 4. To me the test of whether Wendy abused his power should be the following - Conflict of interest- (Did she recuse herself in any discussions relating to her companies and its loan applications) - Disclosure- To the other board members, disclosure to AFS off IDC, disclosure to the relevant political authority, the Treasury department, especially if it was a non interest yielding loan) - Consistency- What other applicants (for loans) received non interest yielding loan, other than her companies -Competitive- Whether other entities were given an equal opportunity as her company to purchase a state in the IDC subsidiary Hans Merensky Holdings 5. Im so disappointed with the SA media, that seems to be reluctant to follow the allegation through, like they did with the allegations surrounding Balfour. They only interested in following Julius Malema so that they can twist any things that he said. Regards Kodlana >>> "Mduduzi H Vilakazi" <[EMAIL PROTECTED]> 11/18/2008 3:08 PM >>> Cde Smile. Can you assist us with any prescripts that prevents board members from participating in the financial transactions as reported by Sunday Times. I found the story very interesting but also lacking the correct information that will assist us laymen to arrive at a conclusion as to whether Luhabe abused office or not. To me that was poor journalism and warrants our further investigation beyond the limited work done by the reporter. I have tried in vain to find any prescripts that governs IDC and would be glad if someone assists us. We need to ensure that we safeguard our country from mal-administration or capitalist corrupt activities. We also need to be careful because if one will dig too much into businesses and enterprises, we might collapse the structures because it is an open secret that most of our leaders are in business through questionable means. Its either they got business from structures where they are stewards or they were provided business shares by questionable figures. Let us engage, Macabane. >>> "Smile Ndlovu" <[EMAIL PROTECTED]> 18/11/2008 14:06 >>> 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. 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