Suspend Ithala boss, says IFP

2010-06-30 00:00

THE Inkatha Freedom Party is calling for the suspension of Ithala Finance Corporation CEO Sipho Shabalala following recent revelations of tender irregularities at the bank.

IFP economic development spokesperson and member of the provincial legislature Dr Lionel Mtshali said that his party is also calling for an independent inquiry into Shabalala’s dealings in his successive positions in KZN’s civil service. “A mere forensic investigation is no longer enough.”

Mtshali added that only an independent inquiry can investigate the awarding of a R169 million contract without a tender process by Ithala Bank to Bombe Chitey Construction Projects, owned by Durban businessman Lungelo Radebe, whose business dealings appear to be linked to the Ithala CEO.

“Shabalala’s controversial dealings go back all the way to his previous posting at the provincial Treasury,” said Mtshali.

The IFP does not believe that provincial Treasury, where Shabalala previously acted as head of department, can investigate his dealings at Ithala with impartiality. “There is no doubt that Shabalala enjoys protection in the highest political places.”

He added that the IFP will call for a debate on Shabalala at the next available opportunity in the legislature, and seek the establishment of an independent inquiry into his dealings.

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