The Independent Development Trust’s board and the department of public works and infrastructure have agreed to devise an exit plan, which will see the entity closed by early next year.
The department of public works and infrastructure and the board of trustees at the Independent Development Trust have agreed to expedite the entity’s exit strategy, kick-starting a process that will see the troubled state-owned entity dissolved by March next year.
The department has provided the ailing entity with R500-million in bailouts over the past five years. De Lille initially told the board, which had requested a capital injection from the department, that the fiscal constraints the country is facing makes it difficult to justify any further bailouts for the state-owned entity.
The payments will be made to the IDT once “a detailed breakdown of all operational costs have been scrutinised and assessed by the CFO [chief financial officer] of DPWI [department of public works and infrastructure] or his nominee”, the letter reads. Employees of IDT whose contracts expired at the end of March were given a four-month extension, with the option of renewal. The renewed contracts include a caveat recognising that the IDT is embarking on an exit strategy and will be dissolved within a year.
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