The implementation of Ithala’s group repositioning journey to reclaim its position as the prominent Developmental Finance Institution in KwaZulu-Natal is paying dividends and the organisation has received a “clean audit”, as determined by the Auditor General South Africa (AGSA), for the financial year 2013/14.  The AGSA declares a “clean audit” if the financial statements are free of material misstatements and there are no material findings on both the annual performance report and non-compliance with key legislation. 

The strategy comprised an initial phase focussing on strengthening the institutional, financial and governance foundation that is essential to support business growth.  This is a five year programme, with the first two years being about “stopping the bleeding”.   The culmination was the target set for 2013/14 to achieve a “clean audit”. Notwithstanding Ithala achieving an unqualified audit opinion over the past five years certain material findings prevented Ithala from achieving a clean audit.  Whilst this milestone has been achieved, the challenge is for Ithala not to regress and to continue to now maintain this status. With continuous changing standards and increasing reporting and legislative requirements in the public sector, the workload to maintain this status remains substantial.

“Our repositioning strategy has enabled Ithala to get its house in order and re-assert its development role.   Achieving a “clean audit” indicates that our drive to promote good corporate governance, coupled with the implementation of stringent policies, is paying dividends.  It is now about implementing the many initiatives that will provide the impetus for change,” said Ithala Group Chief Executive, Ms Yvonne Zwane.  “Furthermore, we recognise the support and guidance of our MEC, Mr Michael Mabuyakhulu in helping us achieve this milestone and we extend a special thanks to AGSA for their patience, diligence and strong partnering approach to our work together.  Last but not least, we must acknowledge the significant role played by Team Ithala comprising our Board, Executives, Management and our employees,” added Ms Zwane

Of the  seven “clean audits” of the  Entities listed under PFMA  in Kwazulu-Natal,  five fell under the Department of Economic Development, Tourism and Environmental Affairs and three of these under the Ithala Group,  namely Ithala Development Finance Corporation Limited, Ithala SOC Limited and KZN Growth Fund Managers SOC Limited.

Ithala is poised to move forward on a new trajectory that will result in enhanced business growth, improved sustainability and greater impact in its key development role.  In line with placing Ithala at the forefront of reporting standards, an Integrated Report has been produced for the first time.  Whilst this is a two year programme, it is envisaged that the usefulness and relevance of stakeholder information now presented will guide a deeper understanding by all stakeholders into the activities of the Ithala Group.