Department criticised for race-based relief fund
LOWVELDER / 28 APRIL 2021 - 10.10 / MARINETTE POTGIETER
The provincial Department of Economic Development and Tourism (DEDT) was accused by the FF Plus of basing its standards for the qualification of its Tourism Relief Fund (TRF) on race and not on need.
The provincial Department of Economic Development and Tourism (DEDT) was accused by the FF Plus of basing its standards for the qualification of its Tourism Relief Fund (TRF) on race and not on need.
The DEDT announced in January it will release a grant of R10 million to companies in the tourism industry in the province as relief after a disastrous year brought on by lockdown regulations.
On the application form it states that only companies that are B-BBEE-registered will qualify for the fund. The closing date for applications was January 29.
On March 16, the MEC for DEDT, Vusi Mkhatshwa, met with members of opposition parties and the media during a legislature meeting.
According to the Mpumalanga FF Plus, present at the meeting, fundamental questions about the relief scheme went unanswered.
The FF Plus released a statement the following day, March 17, criticising the department and its MEC, Vusi Mkhatshwa, for the race-based Covid-19 relief scheme, saying the ANC is using the global pandemic as an excuse to enforce radical economic change in the tourism sector.
“It is clear that the provincial government is not concerned with the suffering industry.
Both black and white workers in white-owned companies are being sacrificed to push the ANC’s agenda for radical economic transformation,” said the provincial FF Plus leader, Werner Weber, in the media statement. “The Covid-19 pandemic is being used as an excuse to speed up this process of transformation.”
The statement demanded answers to basic questions.
“Is the funding aimed at specific race groups? Why is race used as a measure to withhold help to businesses in white ownership? How many tourism companies in Mpumalanga qualify for the financing (will receive a part of the R10 million)? How many black empowerment companies will receive help, and how much will they receive? Is the department aware of how many persons of colour are in employment in white-owned companies, who will not receive government help? How exactly will the R10 million be split up? Which finance model will be used?”
The DEDT spokesperson, Tsekiso Machike, later told Hazyview Herald that “the Mpumalanga TRF is a short-term intervention to assist those businesses in the sector affected by the Covid-19 pandemic”.
The department said a total of 500 applicants have been recorded, but it still does not know how many applicants qualify for the grant, which is set to be paid at the end of March. By April 26, however, this list was still not made available.
“The evaluation and adjudication process is under way,” Machike said. “We have appointed a committee with representatives from business, civil society and other government institutions. Both DEDT and the MTPA are offering technical support and the secretariat function for the committee.”
Although the DEDT does not yet know the number of applicants to qualify, it can assure there will be nothing left over of the R10 million.
“We do not anticipate that funds will be left over as the funds allocated for the TRF are not sufficient for the number of businesses that have applied. The committee will, however, ensure that all qualifying businesses will receive TRF. Further funding will be requested given the improving economic conditions.”
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LINK: https://lowvelder.co.za/726770/department-criticised-for-race-based-relief-fund/
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