East London IDZ executives must pay back the bonuses

The Democratic Alliance calls for the executives of the East London Industrial Development Zone (IDZ), who late last year paid themselves R7 million in performance bonuses, to immediately repay them to the IDZ coffers.

This comes after last week’s bail out of the insolvent IDZ by national government’s Department of Trade and Industry. The East London IDZ has been driven into a cash crisis and is now unable to pay salaries, wages and debts to creditors.

It is unconscionable and unacceptable that executives draw R7 million in performance bonuses from the IDZ while simultaneously pushing the entity to bankruptcy. This money must be immediately repaid.

The IDZ is unable to draw on available Development Bank funding because it cannot produce sound financial statements. It is through the mismanagement of the IDZ executives that the financials are in a mess, and therefore any performance bonuses are clearly not deserved.

The IDZ should be a source of major industrial development and job creation; but that is now seriously under threat.

The DA will therefore write to the MEC for Economic Development, Environmental Affairs and Tourism, Sakhumzi Somyo, to call for him to secure repayment of these lavish bonuses in the face of this cash crisis.