Taxpayer loses as multimillion-rand investment collapses amid allegations of fraud, mismanagement

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INSA, a cookware manufacturer which allegedly paid exorbitant amounts to relocate a plant from Turkey to South Africa, was liquidated in November.
INSA, a cookware manufacturer which allegedly paid exorbitant amounts to relocate a plant from Turkey to South Africa, was liquidated in November.
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The KwaZulu-Natal Growth Fund (KGF), Industrial Development Corporation (IDC) and private investors have burnt their fingers and lost more than R330 million in an ill-fated cookware-manufacturing plant which has now been liquidated.

INSA (Pty) Ltd., in which the KGF, IDC and private funders had invested hundreds of millions, was liquidated by the Pietermaritzburg High Court in November last year after failing to pay creditors.

The KGF invested more than R230 million through debt and equity funding in 2016. The fund, a so-called developmental finance institution (DFI), which was founded and funded by the KwaZulu-Natal government, also convinced investment company Brand Investments to invest R63 million in INSA.

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