THE DEVELOPMENT BANK of Southern Africa (DBSA), which has been heavily involved in financing local ICT projects, has dismissed concerns that it is awarding millions of rands in loans to companies linked to its directors.
While the DBSA says the related party transactions do not represent any conflict of interest, both the Inkatha Freedom Party and Parliament's Standing Committee on Public Accounts (Scopa) have criticised the bank's decisions.
The DBSA said in its 2008/9 annual report that the bank had granted loans worth over R500 million to companies linked to directors Brian Figaji, Wendy Lucas-Bull and Lulu Gwagwa, who all serve on the DBSA's board.
Of the total, R369 million was allocated to companies linked to non-executive director Lulu Gwagwa. One of the businesses includes local pay-TV newcomer On Digital Media (ODM), which was granted R200 million.
Despite the shareholding and her relationship with the DBSA, ODM says there is no conflict of interest, because she was only appointed director of the DBSA after ODM applied for and was granted the loan by the bank.
MARTIN CZERNOWALOW
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