IDC CFO Isaac Malevu resigns

The chief financial officer of the Industrial Development Corporation (IDC), Isaac Malevu, has resigned to return to the private sector.

While the company’s latest 2026 results were flagged for not adhering to proper accounting standards and needing significant corrections before being signed off with the 2025 results restated, the IDC said this was not the reason Malevu resigned.

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.”

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.

Auditors 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 misstatements were largely due to the incorrect valuation of mining rights for a Northern Cape mine in which the IDC holds a 25% stake.

The IDC said it had flagged concerns with the valuation and worked to ensure a re-evaluation.

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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.

In the 2026 results, the auditors, BDO and Deloitte, also 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”.

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”.

A remediation programme has been implemented to improve financial reporting governance and documentation of systems and 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.

Read: IDC forced to correct multibillion-rand accounting errors

Malevu spent six years at the IDC

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.

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“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 stemming from the war in the Middle East.

Foskor has suffered frequent losses in recent years. Still, the state has decided it remains a strategic asset due to its role in the agricultural industry- meaning its Malevu is not likely to be held responsible for its financial losses.

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