Response to allegations made by Mr. Bantu Holomisa, Leader of the UDM
Response to allegations made by Mr. Bantu Holomisa, Leader of the UDM

 

Response to allegations made by Mr. Bantu Holomisa, Leader of the UDM

Here are the facts:

In March 2020 the DBSA approved a funding application from Poseidon (Pty) Ltd ("Poseidon"). The funding application was subject to our normal investment and credit processes and procedures, including due diligence which focuses on and evaluates governance, compliance and risk factors on all potential investments and projects. Examples of these include the identification of politically exposed persons (who are subjected to enhanced due diligence) and notification of the existence of any adverse media checks associated with a project.

The funding application was ultimately approved by the Bank’s Board Credit & Investment Committee (BCIC) which is predominantly comprised of independent non-executive directors. The approval was subject to certain conditions including those put in place to mitigate against any potential reputational risks that may arise. The conditions covered any risk that could arise out of any indirect shareholding of Harith General Partners (Pty) Ltd in Poseidon.

It is important to note that DBSA funding will be directed to Poseidon which is partly owned and managed by young black professional entrepreneurs who have developed innovative models to address the country’s water infrastructure challenges. The DBSA asserts that adequate checks and balances were incorporated into the decision made to approve the funding to Poseidon and DBSA strongly refutes the allegations and false statements made by Mr. Holomisa in his letter. The DBSA is not beholden to individual interests and all investment decisions are made purely on development impact and financial merits. The investment was approved because its objectives were and are still aligned to our developmental mandate which seeks to address the country’s infrastructure challenges.
 
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