IDC avoids confirming board probe into Tinley Club Med deal

The Industrial Development Corporation (IDC) has not clarified whether a transaction linked to the Tinley Club Med development was subjected to a board inquiry, leaving a key governance question unanswered.

At a briefing on Thursday, addressed by Minister of Trade, Industry and Competition Parks Tau, the issue was put to the IDC after indications from within the institution that the deal had been the subject of a board-level investigation and a report had been submitted.

Asked to confirm whether such an inquiry had taken place and whether any findings would be made public or presented to parliament, IDC head of corporate affairs Tshepo Ramodibe did not provide a direct answer.

“Because this relates to ongoing matters and specific client engagements, the board has exercised its oversight in testing what is before it,” Ramodibe said. “Once there are definitive outcomes, we will report through the appropriate governance and regulatory platforms. At this stage, it remains an ongoing matter.”

The response does not establish whether a formal board-led inquiry exists or whether any findings have been made.

The issue goes to how the IDC applies its own governance processes. The question is not only the transaction itself but whether internal review and oversight mechanisms are applied consistently in high-value deals.

The briefing was convened to outline the IDC’s strategic direction, introduce a newly appointed board and set out measures aimed at strengthening governance.

Board chair Gloria Serobe said the board had held back from public engagement in its early months to understand the institution before responding.

“We have deliberately been absent from talking to the media because we needed to understand the institution first,” she said.

Serobe said the board had identified weaknesses in responsiveness, turnaround times and communication, particularly in how complaints were handled. A complaints review panel would be established, chaired by a board member but including external participants, to assess grievances and report to the board monthly.

She said complaints ranged from delays in decision-making to concerns about fairness and process and that those would be addressed through internal mechanisms.

IDC chief executive Mmakgoshi Lekhethe said the institution was operating in a constrained economic environment marked by low growth, high unemployment and infrastructure bottlenecks.

She said the IDC would move beyond its traditional role as a direct lender towards a model based on partnerships, co-investment and support for new sectors, including critical minerals, digital infrastructure and energy transition.

Lekhethe also rejected claims that the IDC was retreating from its transformation mandate, saying black-owned enterprises accounted for about 60% of its funding portfolio.

She said the IDC had supported 73 companies through the department of trade, industry and competition’s black industrialists scheme, with R7.28 billion approved. About R2bn was allocated in the past financial year to support distressed businesses.

Tau said the IDC was being repositioned as a platform to mobilise capital, partnerships and technical capability across key sectors of the economy, aligned with government priorities of job creation and reducing poverty.

He also acknowledged concerns raised in parliament and in public discourse, saying the new board had been tasked with strengthening oversight and improving accountability.

The status of any board inquiry into the Tinley-linked transaction remains unclear. The IDC has not confirmed whether such an inquiry took place or whether any findings exist.

For now, the matter remains within internal processes, with disclosure deferred until those processes are concluded.