IDC Fights Gag Order in R90m Solar Panel Scandal: Whistleblowers Silenced

The Industrial Development Corporation (IDC) is fighting a gag order that prevents it from interviewing whistleblowers who claim ARTsolar, a company it funded with R90 million, may be importing solar panels from China instead of manufacturing them locally as promised.

The case has sparked concerns over corporate accountability, media freedom, and the misuse of public funds—raising questions about whether South Africa’s push for local renewable energy manufacturing is being undermined.

The Allegations: A R90m Bet on Local Manufacturing Gone Wrong?

In 2022, the IDC granted ARTsolar R90 million to establish a solar panel manufacturing plant in KwaZulu-Natal. However, three whistleblowers—a former client (Brett Latimer) and two ex-employees (Kandace Singh and Shalendra Hansraj)—allege the company is falsely claiming local production while importing panels from China.

Journalist Bongani Hans (no relation to Shalendra) sought comment from ARTsolar, but before the story could be published, the company secured an urgent interim interdict from the Durban High Court on 26 March. The order:

• Bans the whistleblowers from repeating their claims to the IDC, media, or government bodies.
• Blocks journalist Bongani Hans from publishing the allegations.
• Remains in place until a final hearing in July.

IDC Fights Back: “We Need to Investigate”

The IDC, which was not notified of the court application, is now urgently applying to intervene, arguing the gag order blocks its investigation into whether public funds were misused.

In court papers, IDC legal advisor Cebo Nzuza said:

• The whistleblowers’ claims are critical to verifying ARTsolar’s compliance.
• The company’s sudden court action—filed just before a scheduled factory inspection—raises red flags.
• The IDC is mandated to ensure taxpayer money is properly spent, and the order prevents it from doing so.

ARTsolar’s Defense: “No Right to Defame Us”

ARTsolar chairman Bebinchand Seevnaryan argues the IDC has no legal standing to intervene and claims:

• The whistleblowers are “disgruntled” former associates.
• The IDC already receives monthly financial reports and can audit the company without needing defamatory statements.
• The court order only stops false allegations, not legitimate oversight.

Media Freedom Under Threat?

AmaBhungane and the Freedom of Expression Legal Network are considering joining the case, warning that the gag order could set a dangerous precedent for investigative journalism.

What’s Next?

The case will be heard urgently on 9 April in the Durban High Court. If the IDC succeeds, it could reopen the door for whistleblowers to speak out—and potentially expose whether millions in public funds were misused.

Key Questions:

• Did ARTsolar misrepresent its operations to secure IDC funding?
• Why was the IDC excluded from the original court hearing?
• Will the media be allowed to report on allegations of fraud involving public money?

{Source GroundUp}

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