Durban - The newly-appointed chairperson of beleaguered
Ithala Bank has promised to implement changes to make the bank sustainable.
"I know the responsibility of this board is enormous.
We will make sure that there is operational efficiency and financial
sustainability," said Dr Mandla Gantsho.
He was addressing the media in Durban after three other
people were announced as new Ithala board members by KwaZulu-Natal economic
development MEC Mike Mabuyakhulu.
Gantsho said he was fully aware of the challenges Ithala faced, adding that the board would make sure the company was run
efficiently.
Ithala has been at the centre of several controversies in
the past few years. In 2006, it was reported that May Mashego-Mkhize, wife of
the then economic development minister and current premier Zweli Mkhize,
had received a R13m loan for farming purposes.
It was reported that her partners in the venture were Pretty
Mbanjwa and Ntombi Shabalala, the wives of former KwaZulu-Natal director general Dr Kwazi Mbanjwa and Ithala's Sipho Shabalala.
Loans were also reportedly granted to various top Ithala
executives, including former Ithala CEO Sipho Nyembezi, who earned R2.45m a year.
To prevent further embarrassment, Mabuyakhulu announced in
2009 that the state-funded Ithala Bank would no longer give loans to senior
government officials.
Ithala was again hit by scandal in 2010, when its
suspended CEO Shabalala was given a warning by Mabuyakhulu after a task team
found he had awarded a R169m tender to Bombe Chithey Consulting Projects
without following proper procedures.
Shabalala was suspended in August last year following
reports of a criminal investigation against him.
Asked what would happen with Shabalala's position,
Mabuyakhulu said the board would soon apply its mind, adding that it was
difficult to deal with the matter as it was in court hands.
"We thought it (court processes) would run faster but
it has not happened," he said.
Siphiwe Madondo was acting Ithala CEO. Desmond Golding, a
member of the ANC's economic transformation committee, Nomalungelo Matyumza and
Gregory White were also announced as new Ithala board members on Monday.
Mabuyakhulu said he was happy that Ithala had the best men
and women on its board.
"These people face a huge challenge of making sure that
Ithala fulfils its mandate. Ithala's location is very crucial. We want to make
sure that it creates jobs," he said.
The new chairperson is currently CEO of Africa Rising
Capital, an emerging black-owned financial service provider. He was also
appointed by former president Nelson Mandela in 1997 to be a commissioner on
the finance and fiscal commission which was set up to advise parliament on
intergovernmental fiscal transfers.
Gantsho was one of the commissioners appointed by former
president Thabo Mbeki to investigate the reasons for the rapid depreciation of
the rand in 2001.