Taxpayers’ money used to fight KZN Growth Fund battles

KZN Growth Fund board chairperson Silas Hlophe. Photo archives

KZN Growth Fund board chairperson Silas Hlophe. Photo archives

Published Jan 11, 2023

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Durban — Goodlife, the company that is embroiled in a protracted legal battle with KwaZulu-Natal Growth Fund Trust over the board’s cancellation of R72 million it had already approved, has accused the provincial government of allowing the board to abuse taxpayers’ money on a frivolous case.

In a letter, the company director Busi Gumede wrote to premier Nomusa Dube-Ncube. The Daily News has obtained this letter.

Gumede said she strongly believes the fund was holding her company to ransom while they used taxpayers’ money to prolong a case. Gumede said it was clear the fund would lose, but because the board members were not paying from their pockets, they did not care.

Gumede said her company never intended to take the matter to court but was left with no option after exhausting all available avenues to avoid court because the government failed to assist her company.

Gumede said that after Durban High Court Judge Elijah Nkosi indicated that he intended to rule in favour of her company, she thought the board would come to its senses and agree to an out of court settlement, but they did not respond to her request for a round table discussion.

Gumede added that what is currently happening was the proof of what the board warned her about, that she would not be able to take them head-on as she would not have the financial muscle.

“I am asking you to please use the authority of your office to help bring this matter to closure sooner. My company is bleeding, and I do not have money to spend on legal fees. I do not have the public purse to carry the court case and cannot find relief anywhere,” pleads Gumede.

The premier is yet to respond to the matter, but Economic Development, Tourism and Environmental Affairs spokesperson Malusi Mchunu said it would be difficult for MEC Siboniso Duma to intervene even if he wanted to because he would be accused of interfering with the work of the board.

“These entities have some autonomy, although the government is a shareholder. The MEC cannot just get involved in operational matters as people may think because he would be accused of interfering,” said Mchunu

The board chairperson, Silas Hlophe, had not responded to a request for comment by the time of publication.

Previously, Economic Development, Tourism and Environmental Affairs MEC Siboniso Duma had said: “We affirm our commitment to ensure we get to the bottom of all issues. For now, we have allowed all internal processes to proceed without delay.”