Plans to return to the private sector.
The chief financial officer of the Industrial Development Corporation (IDC), Isaac Malevu, has resigned to return to the private sector.
The IDC’s latest financial results for the year ended March noted that the IDC did not adhere to proper accounting standards and had to implement significant corrections to its 2026 financial results before the joint auditors would sign off on them.
However, the IDC told Moneyweb it had initially flagged errors related to the incorrect valuation of unlisted assets, which led to the restatement of 2025 results.
In the 2026 results, the auditors, BDO and Deloitte, highlighted improper financial reporting controls and stated that “the financial statements submitted for auditing were not fully prepared in accordance with the prescribed framework as required by the Public Finance Management Act”.
Read: IDC reports R4.65bn loss amid restatements
They noted material misstatements valued at R2 billion. Material misstatements are errors significant enough to affect the accuracy of financial results and how they influence users’ decisions.
The board audit committee noted that “significant improvements are required in certain areas of financial reporting governance, control execution, disclosure management, SAP access governance, segregation-of-duties controls, consolidation processes and management review procedures”.
However, after making changes, the IDC received an unqualified audit, indicating that its final results for the year ended March 2026 aligned with the required proper accounting rules and were accurate.
A remediation programme has been implemented to improve financial reporting governance and documentation of systems and procedures.
The board requires quarterly reports on the remediation programme.
Read: IDC forced to correct multibillion-rand accounting errors
Malevu spent six years at the IDC
In an emailed response an IDC spokesperson said, “Malevu’s resignation is not connected to any audit findings, financial reporting issues or the IDC’s performance. He advised the board and management of his decision to pursue opportunities outside the IDC as he approaches the end of his contract term.”
Malevu joined the IDC in 2020, at the height of the Covid-19 pandemic. The IDC said he had contributed to its sound financial stewardship, governance and institutional stability, instilling investor confidence and continuity through a period of senior leadership transition.
“He will be returning to the commercial sector to pursue the next chapter of his professional career in the private sector and will continue to contribute to and support public-private partnerships that advance sustainable development and economic growth.”
The board expressed its appreciation to “Malevu for his dedicated service, commitment and contribution to the IDC, and wished him well in the next chapter of his professional journey”.
IDC is now unprofitable
The IDC’s annual results revealed a significant loss of R4.65 billion – a steep reversal from profits of R329 million in the 2025 financial year and R7.5 billion in 2024.
The loss was largely due to the IDC’s 59% majority stake in phosphate miner and fertiliser producer Foskor, which itself incurred a R2.8 billion loss for the year ended March 2026, linked to production closures and rising input costs caused by the Middle East war.
Foskor has suffered frequent losses in recent years, but the state has decided it remains a strategic asset due to its role in the agricultural industry.
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The 2025 results were restated mainly because of an external party’s failure to correctly value mining rights held by Northern Cape’s Adelaide Ruiters Mining and Exploration, in which the IDC holds a 25% stake. The IDC said it had flagged concerns with the valuation and worked to ensure up a re-evaluation.
The mining rights had been valued at R10.9 billion for the year ended February 2024, but were subsequently reassessed at about 96% less (R438 million) following a detailed feasibility study. The revaluation resulted in a R2.6 billion impairment attributable to the IDC’s stake.
