Johannesburg - The Industria Development Corporation's failed legal action against a black women-owned mining company over a R3billion debt undermines “the struggle for economic transformation and is a destruction of black economic empowerment”.
The IDC had approached the courts and alleged in filed papers that Kalagadi won't be able to repay just more than R3bn the mining company owed the financing institution as at April this year. Khumalo is a divisional executive responsible for subsidiaries and post investment at the IDC, which has a 20% stake in Kalagadi.
“Since July 2019 we have communicated to the lenders that the company’s facilities may need restructuring. We submitted a formal proposal in December 2019 in this regard, and as recently as March 13, 2020,” Mashile-Nkosi said.