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News24
2 days ago
- Business
- News24
IDT mistrust: Minister Zikalala's whitewash that secured IDT CEO Malaka her job
Evidence suggests that interventions by former public works minister Sihle Zikalala and his close comrade, then-IDT chair Kwazi Mshengu, stifled Treasury investigations into allegations against then-acting CEO Tebogo Malaka and substituted a superficial probe by Zikalala's department. Nine days before the 2024 national elections, Zikalala endorsed Malaka's elevation from acting to permanent CEO on the basis that his probe 'found no wrongdoing' against her, but the probe had not been mandated to investigate Malaka. Last month the IDT was slapped down in its attempt to review the contract that Malaka was accused of mishandling after Malaka herself had deposed the founding affidavit. Former public works minister Sihle Zikalala downplayed the findings of an investigation he had commissioned, paving the way for Tebogo Malaka's appointment as chief executive of the Independent Development Trust (IDT) despite her involvement in a R45 million lease scandal. Part one of this series showed how Kwazi Mshengu, Zikalala's confidant and then-IDT chair, led the board in abandoning a National Treasury investigation into the parastatal's procurement of a new head office lease – even refusing to be briefed on its provisional findings. Mshengu and the board asked Zikalala to have his Department of Public Works and Infrastructure, of which the IDT is an implementing agency, investigate instead. The current story shows that while departmental auditors went on to produce a damning report on procedural irregularities, they had also warned Zikalala they were unequipped to probe and could not investigate substantive allegations against Malaka and others – a limitation he readily accepted. Despite the auditors recommending a further probe by the department's anti-corruption unit, Zikalala instantly wrote to Mshengu endorsing Malaka's appointment, claiming the auditors had 'found no wrongdoing' on her part. This was on 20 May 2024, just nine days before the national elections that ushered in the government of national unity. Mshengu signed off on Malaka's appointment six weeks later, as new ministers – including the DA's Dean Macpherson, Zikalala's successor – were being sworn in. Zikalala's exoneration of her had proved decisive for Malaka, whose elevation from acting to permanent chief executive was blocked after she had entered a five-year, R45 million lease with politically connected Moepathutse Property Investments behind the board's back. This followed a procurement process marred by allegations of favouritism. Moepathutse, which has denied wrongdoing or any relationship with Malaka, sued the IDT for damages and costs, which the IDT itself estimates amount to almost R14 million, after it failed to occupy the building. The IDT responded by washing its dirty linen in court. It argued that the lease was invalid because tender specifications had been 'tailormade' for Moepathutse's Irene property and because Malaka had signed without the requisite board authority. The IDT's defence took a potentially fatal hit two weeks ago when the Gauteng High Court in Pretoria dismissed a review application it had brought to set the lease aside. The judge found that the IDT had failed to prove the lease was 'tainted by any illegality' in any way. Malaka – despite being heavily conflicted – had deposed the IDT's founding affidavit. Malaka has not responded to detailed questions. Under pressure In response to amaBhungane's questions, Zikalala, now deputy to Macpherson, did not address why his endorsement of Malaka had claimed 'no wrongdoing' despite the probe's limited remit. He said, however, that he had held back Malaka's appointment for over a year pending the investigations and that she had 'engaged in legal challenges through her lawyers relating to [her] appointment'. Zikalala said that when he became minister in March 2023, his predecessor, Patricia de Lille, had already recommended Malaka to Cabinet. 'I am the minister who withdrew the [recommendation] for investigations to be conducted.' As detailed in part one, the board then considered procuring a forensic firm to conduct a probe, but hesitated to entrust the process to IDT management, then led by Malaka in acting capacity. One thing led to another and National Treasury, assisted by law firm ENS, commenced a forensic investigation on the board's behalf. Towards the end of the year, a reconstituted board, now chaired by Mshengu, canned the Treasury investigation and asked Zikalala to have his department investigate internally instead. The board's resolution still targeted Malaka though, calling for Moepathutse's selection to be probed 'specifically relating to the relationship between the lessor and the acting CEO'. But the new probe was neither forensic nor focused on Malaka. Zikalala – who said he was committed 'to serve with integrity, transparency and accountability' – shared the final report with amaBhungane. READ | This report shows that the request to investigate had been routed through the department's inter-governmental relations unit to internal audit, not its governance, risk and compliance (GRC) branch, whose remit includes fraud and corruption investigations. The audit unit agreed to help, but only with an 'assurance audit' to check compliance with control prescripts. 'Internal audit performs assurance audits and not investigations/forensic audits which reside within GRC.' So concerned were the auditors that the limitations of their approach be understood that they insisted on Zikalala's approval and board concurrence before they start. 'The minister approved the proposed assurance audit approach on the 15th of March 2024.' The internal audit chief signed off on her team's report two months later. Within its narrow lane, the report was damning. It was 'unable to provide reasonable assurance that the procurement process was fair, transparent and regular'. It identified multiple gaps in the procurement file and 'material non-compliance to procurement policies, laws and regulations'. However, the report also reiterated that 'our audit did not cover the review of conflict of interest of executive management, the board members, [and supply chain management] officials to any bidder, especially to the recommended bidder'. This, it said, 'requires special tools that we do not have'. The auditors went on to recommend that the board, in consultation with the minister, ask the GRC's anti-corruption unit after all 'to investigate further the areas' they could not cover or where information had been unavailable to them. No wrongdoing Zikalala wasted no time, least of all to initiate the deeper investigation. Instead, on 20 May 2024 – the same day the audit report was signed – Zikalala addressed a letter to Mshengu in his capacity as board chair. 'You will recall the proposal,' he wrote, 'to hold in abeyance the matter of the confirmation of Ms Tebogo Malaka… pending the conclusion of the investigation… The investigation by the department has been completed and no wrongdoing was found on the part of Ms Malaka. 'As such, I want to confirm my concurrence to the board's decision to appoint Ms Malaka as the IDT chief executive officer.' Zikalala did this knowing his audit team had not probed allegations against Malaka – and despite briefings from the previous board that Treasury had been tasked to do just that. Zikalala sent the letter nine days before the elections resulted in the ANC losing its majority and Zikalala his post. Mshengu signed off on Malaka's appointment on 3 July 2024, the day new ministers, including Macpherson, were sworn in. Both Mshengu and Zikalala denied there was any connection between their respective actions of canning the Treasury probe, declaring Malaka cleared by the department, and getting her appointed before Macpherson took charge. Mshengu, whom Macpherson removed from the board, said, 'You would also know that IDT is a state entity and its operations are not subject to changes in government. Therefore, the appointment of Ms Malaka as CEO had nothing to do with changes in government. In any event, no one knew what would be the outcomes of the national general elections.' Zikalala said the board had terminated the Treasury investigation of its own accord and that there was 'no so-called 'haste' on my part' to appoint Malaka. He reiterated that he had ordered investigations after becoming minister and had paused the appointment 'for a period of more than a year until there were legal procedures initiated against me as minister'. Another investigation Zikalala also stressed that Malaka's appointment was not the end of the road and that the GRC anti-corruption unit had in fact 'commenced its deeper investigation' as recommended by the internal auditors. That probe only started last November, months after Zikalala was replaced as minister. The department confirmed that the investigation was concluded in mid-February but was awaiting the director-general's sign-off. Its terms of reference included 'determining whether there was irregular, improper and/or criminal conduct by IDT official(s) and/or third parties'. AmaBhungane has submitted a request under the Promotion of Access to Information Act for the canned Treasury investigation reports and will do the same for the anti-corruption unit report. Who will pay? Meanwhile, the costs of this debacle continue to mount. When Moepathutse filed its damages claim, the IDT responded with a special plea, claiming that the bid had been tailored to suit Moepathutse's building and that Malaka had concluded the lease without board approval, which was required due to its value. The IDT asked the court to pause the damages suit it applied in order to review its own decision and void the lease. When the IDT finally filed the review in March 2024, the deponent to its founding affidavit was none other than Malaka – hopelessly conflicted. She put hardly any admissible evidence on the table and the outcome was predictably dire. In a judgment delivered on 16 May, acting judge S J Myburgh complained repeatedly that the IDT had provided no evidence that its decisions were improper. 'The IDT has failed to show that the agreement concluded between itself and the respondent was tainted by any illegality. I thus find myself in agreement with the argument made by the respondent that this application is simply an attempt by the IDT to avoid liability in terms of the now cancelled agreement.' The court dismissed the IDT's application with costs and Moepathutse's damages claim, which the IDT's latest annual report says now stands at almost R14 million, is effectively irresistible, unless, perhaps, the IDT throws Malaka under the bus. The bills are coming. The question is, who will pay?
Daily Maverick
2 days ago
- Politics
- Daily Maverick
IDT mistrust (Part Two) — Minister Zikalala's ‘whitewash' that secured IDT CEO Malaka her job
Former public works minister Sihle Zikalala lowballed the findings of an investigation he had commissioned, paving the way for Tebogo Malaka's appointment as chief executive of the Independent Development Trust (IDT) despite her involvement in a R45-million lease scandal. Evidence suggests that interventions by former public works minister Sihle Zikalala and his close comrade, then-IDT chair Kwazi Mshengu, stifled National Treasury investigations into allegations against then acting-CEO Tebogo Malaka and substituted a superficial probe by Zikalala's department. Nine days before the 2024 national elections, Zikalala endorsed Malaka's elevation from acting to permanent CEO on the basis that his probe 'found no wrongdoing' against her, but the probe had not been mandated to investigate Malaka. Last month the IDT was slapped down in its attempt to review the contract that Malaka was accused of mishandling after Malaka herself had deposed the founding affidavit. Part One of this series showed how Kwazi Mshengu, Zikalala's confidant and then-IDT chair, led the board in abandoning a National Treasury investigation into the parastatal's procurement of a new head office lease — even refusing to be briefed on its provisional findings. Mshengu and the board asked Zikalala to have his Department of Public Works and Infrastructure, of which the IDT is an implementing agency, investigate instead. The current story shows that while departmental auditors went on to produce a damning report on procedural irregularities, they had also warned Zikalala they were unequipped to probe — and could not investigate — substantive allegations against Malaka and others — a limitation he readily accepted. Despite the auditors recommending a further probe by the department's anti-corruption unit, Zikalala instantly wrote to Mshengu endorsing Malaka's appointment, claiming the auditors had 'found no wrongdoing' on her part. This was on 20 May 2024, just nine days before the national elections that ushered in the Government of National Unity. Mshengu signed off on Malaka's appointment six weeks later, as new ministers — including the DA's Dean Macpherson, Zikalala's successor — were being sworn in. Zikalala's exoneration proved decisive for Malaka, whose elevation from acting to permanent chief executive was blocked after she had entered a five-year, R45-million lease with politically connected Moepathutse Property Investments behind the board's back. This followed a procurement process marred by allegations of favouritism. Moepathutse, which has denied wrongdoing or any relationship with Malaka and sued the IDT for damages and costs, which the IDT itself estimates amount to almost R14-million, after it failed to occupy the building. The IDT responded by washing its dirty linen in court. It argued that the lease was invalid because tender specifications had been 'tailor-made' for Moepathutse's Irene property and because Malaka had signed without the requisite board authority. The IDT's defence took a potentially fatal hit two weeks ago when the Gauteng Division of the High Court in Pretoria dismissed a review application it had brought to set the lease aside. The judge found that the IDT had failed to prove the lease was 'tainted by any illegality' in any way. Malaka — despite being heavily conflicted — had deposed the IDT's founding affidavit. Under pressure In response to amaBhungane's questions, Zikalala, now Macpherson's deputy, did not address why his endorsement of Malaka had claimed 'no wrongdoing' despite the probe's limited remit. He said, however, that he had held back Malaka's appointment for more than a year pending the investigations, and that she had 'engaged in legal challenges through her lawyers relating to [her] appointment'. Zikalala said that when he became minister in March 2023, his predecessor, Patricia de Lille, had already recommended Malaka to the Cabinet. 'I am the minister who withdrew the [recommendation] for investigations to be conducted.' As detailed in part one, the board then considered procuring a forensic firm to conduct a probe, but hesitated to entrust the process to IDT management, then led by Malaka in acting capacity. One thing led to another and the National Treasury, assisted by law firm ENS, commenced a forensic investigation on the board's behalf. Towards the end of the year, a reconstituted board, now chaired by Mshengu, canned the Treasury investigation and asked Zikala to have his department investigate internally instead. The board's resolution still targeted Malaka though, calling for Moepathutse's selection to be probed 'specifically relating to the relationship between the lessor and the acting CEO'. But the new probe was neither forensic nor focused on Malaka. Zikalala — who said he was committed 'to serve with integrity, transparency and accountability' — shared the final report with amaBhungane. This report shows that the request to investigate had been routed through the department's inter-governmental relations unit to the internal audit unit, not its governance, risk and compliance branch, whose remit includes fraud and corruption investigations. The audit unit agreed to help, but only with an 'assurance audit' to check compliance with control prescripts. 'Internal audit performs assurance audits and not investigations/forensic audits which reside within governance, risk and compliance.' So concerned were the auditors that the limitations of their approach be understood that they insisted on Zikalala's approval and board concurrence before they started. 'The minister approved the proposed assurance audit approach on 15 March 2024.' The internal audit chief signed off on her team's report two months later. Within its narrow lane, the report was damning. It was 'unable to provide reasonable assurance that the procurement process was fair, transparent and regular'. It identified multiple gaps in the procurement file and 'material non-compliance to procurement policies, laws and regulations'. However, the report also reiterated that 'our audit did not cover the review of conflict of interest of executive management, the board members, [and supply chain management] officials to any bidder, especially to the recommended bidder'. This, it said, 'requires special tools that we do not have'. The auditors went on to recommend that the board, in consultation with the minister, ask the governance, risk and compliance anti-corruption unit after all 'to investigate further the areas' they could not cover or where information had been unavailable to them. No wrongdoing On 20 May 2024 — the same day the audit report was signed — Zikalala addressed a letter to Mshengu in his capacity as board chairperson. 'You will recall the proposal,' he wrote, 'to hold in abeyance the matter of the confirmation of Ms Tebogo Malaka… pending the conclusion of the investigation… The investigation by the department has been completed and no wrongdoing was found on the part of Ms Malaka. 'As such, I want to confirm my concurrence to the board's decision to appoint Ms Malaka as the IDT chief executive officer.' Zikalala did this knowing his audit team had not probed allegations against Malaka — and despite briefings from the previous board that the Treasury had been tasked to do just that. Zikalala sent the letter nine days before the elections saw the ANC lose its majority and he lost his post. Mshengu signed off on Malaka's appointment on 3 July 2024, the day new ministers, including Macpherson, were sworn in. Both Mshengu and Zikalala denied there was any connection between their respective actions of canning the Treasury probe, declaring Malaka cleared by the department, and getting her appointed before Macpherson took charge. Mshengu, whom Macpherson removed from the board, said: 'You would also know that IDT is a state entity and its operations are not subject to changes in government. Therefore, the appointment of Ms Malaka as CEO had nothing to do with changes in government. In any event, no one knew what would be the outcomes of the national general elections.' Zikalala said the board had terminated the Treasury investigation of its own accord and that there was 'no so-called 'haste' on my part' to appoint Malaka. He reiterated that he had ordered investigations after becoming minister and had paused the appointment 'for a period of more than a year until there were legal procedures initiated against me as minister'. Another investigation Zikalala also stressed that Malaka's appointment was not the end of the road and that the governance, risk and compliance anti-corruption unit had in fact 'commenced its deeper investigation' as recommended by the internal auditors. That probe only started last November, months after Zikalala was replaced as minister. The department confirmed that the investigation was concluded in mid-February, but was awaiting the director-general's sign-off. Its terms of reference included 'determining whether there was irregular, improper and/or criminal conduct by IDT official(s) and/or third parties'. AmaBhungane has submitted a request under the Promotion of Access to Information Act for the canned Treasury investigation reports, and will do the same for the anti-corruption unit report. Who will pay? Meanwhile, the costs of this debacle continue to mount. When Moepathutse filed its damages claim, the IDT responded with a special plea, claiming that the bid had been tailored to suit Moepathutse's building and that Malaka had concluded the lease without board approval, which was required due to its value. The IDT asked the court to pause the damages suit it applied in order to review its own decision and void the lease. When the IDT finally filed the review in March 2024, the deponent to its founding affidavit was none other than Malaka — hopelessly conflicted. She put hardly any admissible evidence on the table and the outcome was predictably dire. In a judgment delivered on 16 May, acting judge S J Myburgh complained repeatedly that the IDT had provided no evidence that its decisions were improper. 'The IDT has failed to show that the agreement concluded between itself and the respondent was tainted by any illegality. I thus find myself in agreement with the argument made by the respondent that this application is simply an attempt by the IDT to avoid liability in terms of the now cancelled agreement.' The court dismissed the IDT's application with costs, and Moepathutse's damages claim, which the IDT's latest annual report says now stands at almost R14-million, is effectively irresistible, unless, perhaps, the IDT throws Malaka under the bus.
Yahoo
3 days ago
- Business
- Yahoo
IDT Corporation to Report Third Quarter 2025 Results
NEWARK, NJ, May 30, 2025 (GLOBE NEWSWIRE) -- IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications solutions, has scheduled its report of financial and operational results for the third quarter fiscal year 2025 (the three months ended April 30, 2025) on Thursday, June 5, 2025. IDT's earnings release will be issued and posted on the IDT investor relations website ( at approximately 4:15 PM Eastern. IDT will host an earnings conference call beginning at 5:00 PM Eastern with management's discussion of results followed by Q&A with investors. To listen to the call and participate in the Q&A, dial 1-888-506-0062 (toll-free from the US) or 1-973-528-0011 (international) and provide the following access code: 491722. A replay of the conference call will be available approximately three hours after the call concludes through June 19, 2025. To access the call replay, dial 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and provide this replay passcode: 52353. The replay will also be accessible via streaming audio at the IDT investor relations website. ABOUT IDT CORPORATION IDT Corporation (NYSE: IDT) is a global provider of fintech and communications solutions through a portfolio of synergistic businesses: National Retail Solutions (NRS), through its point-of-sale (POS) platform, enables independent retailers to operate more effectively while providing advertisers and marketers with unprecedented reach into underserved consumer markets; BOSS Money facilitates innovative international remittances and fintech payments solutions; net2phone provides enterprises and organizations with intelligently integrated cloud communications and contact center services across channels and devices; IDT Digital Payments and the BOSS Revolution calling service make sharing prepaid products and services and speaking with friends and family around the world convenient and reliable; and, IDT Global and IDT Express enable communications services to provision and manage international voice and SMS messaging. Contact: Bill Ulrey IDT Investor Relations Phone: (973) 438-3838 E-mail: invest@ ###
Daily Maverick
3 days ago
- Politics
- Daily Maverick
IDT mistrust (Part One) — How Minister Zikalala and his ‘comrade chair' nixed probes into CEO Malaka
In 2023 and 2024, allegations of procurement irregularities against beleaguered IDT chief executive Tebogo Malaka were swept under the carpet by the then IDT chair Kwazi Mshengu and the then minister Sihle Zikalala. These interventions included quashing a forensic probe facilitated by the National Treasury and whitewashing an audit by Zikalala's department. The evidence suggests a parallel effort to stymie investigations into Malaka, clearing the way for her to be elevated from acting to permanent chief executive. Both men deny the accusation. Documents obtained by amaBhungane suggest that former public works and infrastructure minister Sihle Zikalala and his close comrade, the then Independent Development Trust (IDT) chair, advocate Kwazi Mshengu, mounted parallel efforts to shield the parastatal's chief executive from investigations into a R45-million lease scandal. Internal communications, board minutes and draft reports show Zikalala and Mshengu clearing the way for Tebogo Malaka's elevation from acting to permanent chief executive last year despite mounting evidence of impropriety on her part. Allegations include that Malaka concluded a lease agreement with politically exposed Moepathutse Property Investments behind the IDT board of trustees' backs and beyond her delegation of authority. The lease, for a building adjacent to a nature reserve in Irene, Centurion, was intended to provide the IDT with new headquarters, but the IDT never took occupation, leading Moepathutse to sue for R14-million in damages. Moepathutse is directed by former politician Thaba Mufamadi and his relative Vhonani Mufamadi — the brothers of President Cyril Ramaphosa's national security adviser, Sydney Mufamadi. Moepathutse has denied wrongdoing or that it had a relationship with Malaka. Part One of this series shows how, soon after taking over as IDT chair, Mshengu led his board in quashing a forensic investigation facilitated by the National Treasury, asking Zikalala to have his Department of Public Works and Infrastructure conduct a probe instead. Part Two will examine how Zikalala tasked the department's internal auditors — but not to probe allegations against Malaka. The Treasury confirmed to amaBhungane that its investigations were 'already at an advanced stage' when Mshengu pulled the plug, but that Mshengu declined to be apprised of findings so far. Zikalala was minister at the time but has been deputy to the DA's Dean Macpherson since the formation of the Government of National Unity last July. Macpherson removed Mshengu from the board this year. The IDT is a multibillion-rand implementing agency of the department, responsible for social infrastructure like schools and clinics. Mshengu and Zikalala have denied any correlation between their actions, which they maintain were justified. Malaka, who is fighting to retain her position in the face of amaBhungane and Daily Maverick exposés, did not respond to detailed questions regarding the allegations against her. Stop-start tender To casual observers, it may appear as though Malaka's troubles began when Macpherson took over as minister, when in fact they started two years ago under a previous IDT board. The controversy is rooted in an early 2022 board resolution to sell the IDT's existing headquarters at an unassuming office park in Pretoria East and procure leased premises instead. Malaka was already acting chief executive at this point. The tender process was seemingly derailed in May that year when Malaka received a protected disclosure from the head of security, Wilhelm Meyer. An IDT affidavit filed as part of subsequent litigation with Moepathutse alleges that during an impromptu visit to Moepathutse's property, Meyer witnessed the chair of the bid specification committee arriving in the same car as someone connected to Moepathutse. This raised concerns about an inappropriate relationship. At a subsequent meeting of the bid specification committee, the chair allegedly specified criteria — a canteen, a bicycle shed, showers — that 'surprisingly fit' Moepathutse's property. Meyer's disclosure set off a chain of events still rippling out now. A May 2023 draft report from the board to Zikalala states that Malaka did not voluntarily bring Meyer's disclosure to the board's attention until it demanded answers from her. It also alleges that 'an extensive investigation' Malaka promised Meyer was superficial at best. Nonetheless, the tender was cancelled and a second advert placed in August 2022. Despite the protected disclosure, Moepathutse was recommended as the winning bidder and an unsigned lease agreement provided to the board for approval in January 2023. Board in the dark The board was, however, unaware that Malaka had already signed a letter of award to Moepathutse in November 2022. Moepathutse signed its acceptance on the same day. The rental amounted to R45-million over five years. The board was also unaware that in December 2022, Malaka had signed a lease agreement despite her finance chief warning it was above their delegation of authority and needed board approval. The board knew nothing of this when it was time to give its approval. 'An unsigned lease was provided in the board meeting pack, and no reference at all was made by [Malaka] on the fact that a signed lease existed,' the draft report to Zikalala read. It also recorded Malaka's excuse that she was 'not responsible for compiling the board pack'. The board approved the lease agreement in February 2023, in the absence of the then chair, Zimbini Hill, and despite outstanding concerns. The following month, however, after receiving a whistle-blower report deemed 'highly relevant' to the lease procurement, it rescinded its approval. It also resolved to initiate a two-part forensic investigation: into the lease procurement itself and into HR-related allegations against Malaka and other managers. It was only after this that the board was furnished with the lease Malaka had signed months earlier without authority. It is this signed lease that Moepathutse is using to back its R14-million damages claim against the IDT. Draft board minutes display trustees' dissatisfaction with Malaka: 'The board is concerned at the level of dishonesty as management never disclosed the signed lease of 2 December 2022. The CFO informed the acting CEO in an email on 2 December 2022 that the signed lease was beyond the delegation of the acting CEO and the CFO… The board cannot ignore the actions of management in how the lease matter was handled.' The draft minutes and report cite evidence that Moepathutse marketed the same building at significantly lower rates than the IDT lease. Michael Sutcliffe, an ANC-aligned veteran bureaucrat then on the board, submitted documentation allegedly showing that Moepathutse had advertised an annual rental of R4,459,932 — 43% less than the IDT's first-year commitment of R7,851,178. Moepathutse said in response to amaBhungane's questions that its price was 'the lowest of the six bids received by the IDT in response to the public tender'. The draft report to Zikalala, which was circulated to all board members and sent to Zikalala after minor edits from the trustees, states that the board had agreed on the terms of reference for the proposed forensic investigation and that the minister was briefed in detail. It is understood that the document submitted to Zikalala did not differ materially from the draft seen by amaBhungane. Board 'dysfunctional' The board now faced a dilemma. It wanted to procure a forensic firm to conduct its probe, but felt it could not trust IDT management with the process. Initially, the board considered calling for bids from the department's approved panel of firms, but that panel had expired. Questions also emerged about the board's legal authority to initiate procurement. The board then mandated the company secretary to approach the National Treasury about undertaking the investigation as a neutral third party. The Treasury confirmed it could do so, and the company secretary kick-started the process. The Treasury appointed the law firm ENS to assist. A dispute later arose over whether the board had actually mandated the company secretary to launch the investigation or merely to explore its feasibility. This would form the basis for a reconstituted board to halt the Treasury's investigation, despite records showing that both the board and the minister were briefed on the investigation's timeline and costs in September 2023. Moepathutse lodged its high court claim based on the disputed lease contract that same month. Zikalala subsequently intervened with a 'fact-finding mission', citing governance concerns 'arising out of the complaints raised with my office'. Two sources with knowledge of events say that shortly after the Treasury's investigation commenced in October, Malaka allegedly refused to cooperate. When investigators complained, board chair Hill wrote to Malaka urging her to cooperate. Malaka, in turn, lodged a grievance against Hill. Soon after, Zikalala wrote to board members asking them to justify why they should not be removed 'for failure to implement the mandate of the IDT'. Hill resigned on 8 October and was followed by two more trustees. Defending his intervention to amaBhungane, Zikalala said: 'The board members were not aligned and were clearly divided on many issues, rendering the board dysfunctional. After observing this state of paralysis and that this board was nowhere near fulfilling its fiduciary duties, I wrote to all board members, not just Ms Zimbini Hill… Three board members responded while others resigned.' Hill's resignation paved the way for Mshengu's entry. Zikalala appointed him as a trustee in November 2023, after which the board elected him as its chair. A former KwaZulu-Natal ANC Youth League chair, Mshengu enjoyed Zikalala's trust. When Zikalala became provincial premier in 2019, he appointed Mshengu as his education MEC. They served together until their defeat in the ANC's 2022 provincial elections, where Zikalala had stood for chair on the 'Ankole' slate with Mshengu as his deputy. Mshengu had also served as a board member on Zikalala's charitable trust. 'Protect the board' At his inaugural meeting chairing the IDT board towards the end of November 2023, Mshengu set the tone. According to minutes, he shared 'observations' on the Treasury's investigation, questioning its terms of reference and impartiality. The board then resolved 'to consider taking a decision that would protect the board'; 'that the current forensic investigation should be halted'; and that Zikalala should be asked to have his department investigate Moepathutse's appointment, 'specifically relating to the relationship between' Moepathutse and Malaka. A Treasury spokesperson said in response to amaBhungane's questions that it had received a letter from Mshengu that December, 'instructing the Treasury not to proceed further… 'However, by that point, the National Treasury's investigation was already at an advanced stage. Based on the information collected, evidence obtained from imaged computers, and consultations with relevant officials, the Treasury concluded its investigation.' By that time there were already draft reports and contact had been made with the Hawks. The Treasury appears not to have wanted its and ENS's work to go to waste. According to the Treasury, 'In February 2024, the National Treasury wrote to the board chairperson requesting a meeting to present the findings of the investigation as at the time of termination. The chairperson, however, declined, stating that the board would not accept any investigation reports from the National Treasury, referring to the December letter terminating the Treasury's mandate.' Mshengu defended his actions, telling amaBhungane that when Zikalala and the then deputy minister Bernice Swarts introduced him to the rest of the board, they 'indicated that they had received complaints from Ms Malaka on how the investigation was conducted by National Treasury — which she viewed as having predetermined outcomes. The ministry then requested the board to look into these allegations.' The matter was considered at the next board meeting. 'The trustees who had an advantage of being seized with the matter before my arrival unanimously disavowed that they had agreed to the appointment of National Treasury and the terms of reference. 'According to the trustees, the company secretary was mandated to check if either National Treasury or [the department] can do the investigation and advise the board. The company secretary, however, proceeded to appoint Treasury without reverting to the board and to have the board consider and approve the terms of reference.' Mshengu said the decision to terminate the Treasury's mandate was informed by a 'contamination of the process' and that the investigation 'was never squashed but was referred' to the department. He said his relationship with Zikalala was public knowledge and that he had declared it to the interview panel before his appointment. He had met Malaka for the first time when he became a trustee. Either way, the end of the Treasury investigation proved a lifeline for Malaka. As we explain in Part Two, Zikalala would go on to whitewash the investigation entirely, endorsing Malaka for permanent chief executive on the basis that his inquiry 'found no wrongdoing' against her. It never, in fact, investigated her. In July 2024, on the day Macpherson and other Government of National Unity ministers were taking the oath of office, Mshengu signed off on Malaka's permanent appointment. DM
Straits Times
19-05-2025
- Business
- Straits Times
AI and design will see wider adoption only if tools and systems are designed well: Tan Kiat How
Senior Minister of State for Digital Development and Information Tan Kiat How noted that enterprise adoption of AI has grown steadily from 34 per cent in 2022 to 46 per cent last year. PHOTO: SUTD AI and design will see wider adoption only if tools and systems are designed well: Tan Kiat How SINGAPORE - More companies in Singapore view artificial intelligence (AI) as a 'practical tool' for growth and innovation today, with many already moving past the experimentation stage and actively deploying AI in their daily operations. Senior Minister of State for Digital Development and Information Tan Kiat How said this at the inaugural Design AI and Tech Awards ceremony on May 19, an event that recognised enterprises that harness design, AI and technology to tackle real business challenges. Mr Tan noted that, according to latest available figures, enterprise adoption of AI has grown steadily from 34 per cent in 2022 to 46 per cent last year. In 2024, close to 3,000 small and medium-sized enterprises (SMEs) here adopted AI-enabled solutions from local retailers – making use of the technology to help them to forecast demand, optimise venues and reduce wastage. Mr Tan added that with this greater adoption of AI, SMEs should take advantage of various government initiatives and make use of the platforms and tools on offer. He cited examples such as the Chief Technology Officer-as-a-Service, which offers over 300 pre-approved digital solutions, nearly a third of which were AI-enabled last year alone. It supported more than 330,000 users and helped some 3,000 SMEs adopt AI to enhance operations, improve customer efficiency and make informed decisions. Another tool is the SME Go Digital programme, which has benefited close to 100,000 SMEs since 2017 by helping them digitalise at their own pace to suit their needs. 'Innovators and start-ups in Singapore who find solutions to common issues should make use of these platforms to reach out to SMEs and firms,' he said. These platforms are not just for end-users but also for innovators to scale up and implement their solutions in Singapore and overseas. Beyond SMEs, Tan also highlighted the importance of helping workers outside of traditional tech sectors, by providing clear and practical guidance on how roles are evolving and to keep pace with them. In his speech at the Singapore University of Technology and Design (SUTD), Tan also spoke of the focus on enrolling more students in information and digital technology (IDT) courses. Last year, around 8,000 students were enrolled in such courses across universities, polytechnics and the Institute of Technical Education. IDT places at universities have increased from 3,000 in 2020 to 4,000 this year, accounting for more than one in four degree places, he said. Universities are also making AI more accessible, practical and relevant across fields beyond tech, such as architecture, sustainable design and engineering product development. 'It's not about our technology, it's our people and talent. AI and design will only be widely adopted if the tools are designed well with the user interface and experience fitting into existing workflows. Designers not only need skills but (they) also need to understand users and their needs,' said Mr Tan. The Design AI and Tech Awards, jointly organised by The Business Times and the SUTD, saw three finalists named as this year's winners – LionsBot, MetaOptics Technologies and Sengkang General Hospital. The awards were open to all companies, international and locally, including SMEs, start-ups and large corporations. Applicants were assessed across six criteria: design thinking process and strategies; originality; utilisation of AI and advanced technologies; ethical consideration and sustainability; aesthetic and functional qualities; and whether the design has made quantitative and qualitative impact. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
