JOHANNESBURG: South Africa's Industrial Development Corporation, a government-owned lender, is facing lawsuits worth 7.5 billion rand (over $697 million) in connection with a deal that saw Indian billionaire Lakshmi Mittal acquiring a steel firm Iscor here, media report says.

According to a South African online news service provider Fin24.com, Industrial Development Corp (IDC) is facing two lawsuits from a Johannesburg businessman, Joe Modibane, who is demanding 7.2 billion rand and 277 million rand from the lender.

Modibane has sued IDC for 7.2 billion rand for allegedly reneging on a deal to sell him 35.3 million shares it held in steel producer Iscor in 2002.

In an interview last week, Modibane had said that he was shocked to learn that the Iscor shares, which were initially earmarked for black investors, were sold to the  global steelmaker LNM Holdings, a company founded by Mittal.

Iscor, now known as ArcelorMittal South Africa, is part of a steel empire that produces around 10 per cent of the world steel output. In 2008 ArcelorMittal had a gross turnover of $124.9 billion worldwide.

The report said that Modibane has questioned why a company built with South African taxpayers' money, was sold to a foreign investor (Mittal) "who has ignored calls for a black economic empowerment (BEE) deal with local investors."

"The family jewels (Iscor) were sold to Mittal for a few pieces of silver," Modibane said.