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The IFP is shocked to find that Ithala continues to award loans in contravention of its own lending policy that, according to the state-owned development bank's head Sipho Shabalala's recent assurances given to the provincial Legislature, have been tightened.

"We are calling for the suspension of Shabalala from his post at Ithala and an independent inquiry into his dealings in his successive positions in the province's civil service. A mere forensic investigation is no longer enough," said IFP KZN economic development spokesperson Dr Lionel Mtshali MPL.

Only an independent inquiry can investigate the awarding of a R169-million contract without tender by Ithala Bank to Bombe Chitey Construction Projects owned by Durban businessman Lungelo Radebe whose business dealings appear to be linked to Shabalala.

"Shabalala has been embroiled in various conflicts of interest throughout his career in the civil service. His controversial dealings go back all the way to his previous posting at the provincial Treasury," said Dr Mtshali.

The IFP does not believe provincial Treasury, where Shabalala previously acted as Head of Department, can investigate his dealings at Ithala with impartiality. "There is no doubt that Shabalala enjoys protection in the highest political places," said Dr Mtshali.

The IFP will call for a debate on Shabalala's history of conflict of interest in the province's civil service at the next available opportunity in the Legislature and seek the establishment of an independent body of inquiry into his dealings.