Ithala CEO Pearl Bhengu refutes NEHAWU's property vacancy and other claims

In a vigorous defence of her agency's operations, Ithala Development Finance Corporation Group's CEO Pearl Bhengu vehemently rejected claims from the National Education, Health and Allied Workers' Union (Nehawu) that a staggering 40% vacancy rate existed within the entity's industrial estate portfolio.

Apart from dismissing allegations that a large percentage of the IDFCG's industrial property were standing unoccupied and not generating revenue, she also fended off allegations about the management and administration of the agency. 

Bhengu labelled the assertions as unfounded, citing a growing demand for space in the industrial sector.

According to Bhengu, records indicated that its Madadeni operations had achieved a zero vacancy rate, Isithebe stood at 14%, and Ezakheni was at 29%.

She said the overall vacancy rate across the agency's extensive industrial portfolio sat at a manageable 17.98%.

"Isithebe Industrial estate currently has pending lease applications for two new tenants for sites 333 and 362, totalling approximately 35 000m² in the pipeline," Bhengu stated, emphasising that the anticipated leases would lower Isithebe's vacancy rate by 6%.

Last week, NEHAWU marched to Ithala offices to handover their memorandum of grievances, which accused the agency of maladministration and nepotism and lacking to provide workers with the necessary tool of trade.

In addressing allegations regarding inadequate tools of trade, Bhengu assured stakeholders that qualifying employees were provided with personal protective equipment (PPE).

She highlighted that a procurement process was already in place for Midlands Estates for the purchase of equipment like grass cutters and to conduct vehicle repairs, for the benefit of all concerned employees.

In response to the Daily News' questions, the CEO said nothing was amiss with the recent non-operational status of shopping centres, and that the IDFC was actively finalising long-term leases for Umlazi W and KwaMashu shopping centres.

She elaborated that this transition involved a competitive bid process to attract an investor/developer, ensuring that assets revert back to IDFCG post-lease expiry.

Bhengu reassured staff that the integrity of staffing processes, in response to accusations of irregular appointments, was intact.

"The union needs to assist in providing proof to support such allegations; IDFC operates ethically and transparently," she said.

She explained that interviews for positions were conducted with full participation from board members.

About the appointment of a former mayor, Bhengu maintained that the agency adhered to transparent protocols and refuted claims connected to age discrimination, and referenced the Employment Equity Act.

On Nehawu's allegations pertaining to lease mismanagement, in particular the Maphitha Butchery, Bhengu stated those claims lacked basis.

She specified that no renovations were taking place at Nongoma Shopping Centre, while refurbishment of the Manguzi shopping centre was being undertaken by IDFC, with costs to be balanced over the period of the lease, without a rent-free period.

Regarding Ithala's Marawa House property, Bhengu said there were ongoing discussions on its disposal, asserting that current recommendations for leasing were inconsistent with the board's prior resolution and that previous interest from the Department of Health would be pursued.

About the allegations, Khulekani Mthombeni, Executive Chairman of the Professionals Forum of South Africa, labelled Nehawu's actions as a "smokescreen."

He argued that the union’s recent protest was not genuinely about worker grievances but rather a politically charged attempt to undermine leadership and exert control over appointments and assets.

Mthombeni defended Bhengu's leadership, and noted that under her guidance Ithala had achieved consistently unqualified audit outcomes, culminating in a "Clean Audit" for the fiscal year 2023-2024.

"These audits reflect sound governance and fiscal discipline; if mismanagement existed, it would have been flagged," he said.

Mthombeni criticised the nature of the union's memorandum and asserted that it was filled with unfounded claims rather than actionable grievances.

The union’s regional secretary Prince Mthalana said both Bhengu and Mthombeni were entitled to their opinions, and said that all the issues in the memorandum were properly canvassed within the organisation.

“We are waiting for their invite in order for us to provide them with sufficient evidence of what we are alleging.

"We have written a letter to the MEC, Board and the CEO to have a proper sit down with them,” Mthalane said.

He said all the issues raised were genuine concerns of the workers, and if some of the challenges such as mismanagement were not addressed it will have a detrimental effect on workers.

The regional secretary reiterated that none of the demands were plucked from thin air.

DAILY NEWS