R2 million package given to Shabalala

2011-08-08 00:00

SIPHO Shabalala, the suspended Ithala Bank boss and KwaZulu-Natal businessman who faces fraud and corruption charges, was reportedly given a handshake close to R2 million by the state-funded bank, a Durban-based Sunday newspaper reported yesterday.

The newspaper said it saw documents confirming that Shabalala was given a severance package totaling R1 900 041 that comprises R695 572 in salary, R374 650 leave pay and an ex gratia amount of R870 725.

The former head of the KZN Treasury has been drawing a salary while on suspension since August last year after his arrest for allegedly soliciting a R1 million donation from businessman Gaston Savoi, allegedly in exchange for Savoi’s company, Intaka Holdings, receiving tenders worth about R42 million.

Among Shabalala’s co-accused are his political boss at Ithala, Economic Development MEC Mike Mabuyakhulu, and KZN Legislature speaker Neliswa Nkonyeni, former heads of the KZN Department of Health and others.

At the time of going to print Shabalala’s spokesperson, Vuyo Mkhize, was not available to comment, but Shabalala was reportedly furious that details of his package have been leaked to the media.

He accused those who leaked the information of attempting to vilify him in the court of public opinion “as a greedy fat cat that blackmailed the government to give me one final ride on the gravy train”.

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