08-08-2025
Ithala employees present memorandum of grievances
Workers at Ithala Development Finance Corporation (IDFC), represented by the National Education, Health and Allied Workers' Union (Nehawu), have raised red flags about management of the institution under the group CEO Pearl Bhengu.
They cited concerns over the institution's performance, neglect of infrastructure and financial oversight.
Union members marched to the IDFC offices in Durban on Thursday to express the concerns to board chairperson Mpumzi Pupuma and the KwaZulu-Natal department of economic development, tourism and environmental affairs.
The union said the IDFC had not demonstrated any visible growth since Bhengu's appointment in 2018, but has seen steady deterioration of Ithala and the institution's broad development mandate.
Nehawu said its main concern was around possible financial mismanagement and negligence in the institution, which they claim had resulted in significant revenue loss and reputational damage.
One was the alarming decline in the performance and upkeep of Ithala's industrial estates.
'The estates, which were once key drivers of economic development and revenue generation, are in a state of disrepair and neglect. The deterioration of the assets represents a huge loss of potential income for the organisation and undermines the developmental mandate Ithala is expected to fulfil, particularly in empowering historically disadvantaged communities and supporting small businesses in KwaZulu-Natal.'
This has contributed to the high vacancy rate at the institution's industrial estates, which stands at more than 40%.
The union also highlighted the neglect of Ithala's property portfolio, stating some shopping centres under Ithala remain non-operational despite insurance payouts.
'Buildings and properties, many of which are strategically located, are either underutilised, mismanaged or abandoned. The failure to manage revenue-generating assets responsibly reflects not only poor leadership but also gross financial mismanagement. It raises serious questions about accountability, planning and the strategic direction of the entity.'
The union also pointed to the departure of tenants such as Mensu, Defy and other significant businesses from IDFC-managed industrial estates as indicators of the decline.
'That is a direct result of deteriorating infrastructure, lack of strategic tenancy management and failure to create a conducive investment environment.'
The union said it was also concerned about allegations its members had made about Bhengu and management, including:
The failure to provide essential tools of trade to workers who carry out vital functions within the institution and an alleged display of arrogance and dismissiveness by some of management's representatives in the local labour forum.
Favouritism in the appointment of personnel in critical positions by Bhengu and the human capital management unit, with allegations that since Bhengu's arrival at IDFC, there had been an 'a notable influx' of individuals previously associated with the South African Social Security Agency, the institution Bhengu came from.
'It is precisely because of this continued inaction and disregard that we are gathered here today to submit a memorandum of demands and to place on record, once again, the urgent need for decisive intervention and change at Ithala.'
Its demands included:
An independent forensic audit of appointments made under the tenure of the leadership.
The immediate suspension of all questionable appointments pending a review.
The establishment of an inclusive recruitment oversight committee to ensure future transparency, fairness and compliance with Ithala's HR policies.
An immediate investigation into the issuance of purchase orders to tenants receiving rental concessions and the suspension of all self-maintenance arrangements until a transparent, fraud-proof verification system is put in place.
Termination of any lease agreement where the primary occupant is found to be in breach of IDFC policy and strengthening of internal controls to prevent future policy violations related to the use of Ithala-owned properties.
Nehawu gave the IDFC board and KwaZulu-Natal department of economic development, tourism and environmental affairs 14 days to respond to its grievances.
'There is a palpable and growing sense of institutional collapse and any further delays in addressing the issues will only accelerate the deterioration.
'We caution that inaction will carry grave consequences for your leadership and the of IDFC as a public entity entrusted with a developmental mandate,' the union said in its memorandum.
It said issues raised were grave and systemic and demanded IDFC's immediate and undivided attention.
The union refused to hand the memorandum to an IDFC representative, saying it wanted to submit it to Pupuma or any other member of the board.
The memorandum was eventually received by Boyce Mntambo, director of eThekwini district operations for the KwaZulu-Natal department of economic development, tourism and environmental affairs.
