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Fin24 reports that Solidarity and AfriForum have challenged government's decision to use broad-based black economic empowerment scores to determine who is eligible for the R200m in emergency funding for tourism-related businesses affected by the Covid-19 pandemic.
In an urgent application heard in the Pretoria High Court on Tuesday, the union and the civil rights group requested the court to set aside a decision by the Minister of Tourism, Mmamoloko Kubayi-Ngubane, to use transformational scores for the sector as part of her department's relief funding criteria. They argued that the criteria were unconstitutional because, while all businesses were affected by the pandemic, some would not be able to benefit from the fund. Solidarity’s legal representative argued in court that the minister erred in applying empowerment laws to the Disaster Management Act and that the system disadvantaged white-owned business. Speaking after the court proceedings, Kubayi-Ngubane advised that the fund had received more than 10,000 applications, but that her department would not be able to proceed with disbursement of funds prior to the legal matter being concluded. "From our position this is a matter worth defending," she said. Judge Jody Kollapen said he would deliver judgment on the matter by the end of the week. SA's tourism industry has come to a virtual standstill since the national coronavirus lockdown began just over a month ago.
- Read the full original of the informative report in the above regard by Sibongile Khumalo at Fin24
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