Francois Rodgers has welcomed the Special Investigating Unit (SIU) investigation authorized by President Cyril Ramaphosa into iThala SOC Limited (iThala). The probe aims to assess alleged corruption and fraudulent activity in the awarding of a R34 million tender to the IT company Tech Mahindra, dating back to 2017.
He said, some of the concerning allegations at iThala include politically exposed people and senior iThala officials ranking among the highest loan holders at the entity, with some of these loans being written off.
In a statement, the SIU said the investigation will determine whether contract payments adhered to National Treasury guidelines and whether these payments were irregular, wasteful, or resulted in financial losses for the department or the state. The SIU will also investigate any unlawful conduct by iThala employees or officials that may have led to improper benefits.
MEC Rodgers welcomed the announcement by President Ramaphosa, stating:
“The interesting part of this matter is that Tech Mahindra’s attorney, defending against iThala, is from Bowman Gilfillan, where Johan Kruger is a partner. We also know that Kruger was appointed as the Repayment Administrator (RA) by the Prudential Authority (PA), which raises many questions. Some concerning allegations at iThala include politically exposed individuals and senior officials ranking among the highest loan holders at the entity, with some of these loans reportedly being written off.”
Rodgers further expressed concerns over Kruger’s actions, stating that his behavior appears inconsistent with his delegated authority as the appointed RA. “It is no surprise that his conduct regarding iThala has been flagged as worrisome by the courts. Judge Muzi Ncube of the KZN High Court in Pietermaritzburg previously found that Kruger overstepped in the systemic shutdown of iThala,” he added.
MEC Rodgers has extensively engaged with the Prudential Authority (PA) of the South African Reserve Bank and Johan Kruger regarding allegations of fraud, corruption, and maladministration at iThala. In September 2024, Rodgers requested evidence of alleged criminal activity from the PA and Kruger, but his request was denied.
In conclusion, Rodgers emphasized the significance of the investigation into the multimillion-rand tender awarded to Tech Mahindra. “Tech Mahindra is legally represented by Bowmans, a law firm where Johan Kruger is a director. Furthermore, it is alleged that as the appointed RA, Kruger uses Bowmans for legal representation in the iThala matter.”
MEC Rodgers believes the SIU investigation will provide the people of KZN with an opportunity to uncover the truth about the alleged misdeeds at iThala.
