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BL Premium reports that Tourism Minister Mmamoloko Kubayi-Ngubane faces legal action against the R1.2bn Tourism Equity Fund (TEF), launched in January to assist the development of black-owned businesses in the sector.
Trade union Solidarity and AfriForum embarked on legal action after what Solidarity spokesperson Morne Mulder said was an “unsatisfactory” meeting with the minister on Monday. But the minister has defended the equity acquisition fund, saying that transformation in the tourism sector had regressed over the last few years and worsened during the pandemic. She said she would defend any court action against the fund. Among the grounds for the court challenge are that there were procedural shortcomings in its establishment and that in focusing solely on 51% black ownership as a criteria to qualify for the finance, the fund violates the government’s own BBBEE policy and sector codes. These include five other criteria besides equity ownership, namely employment equity, preferential procurement, skills development, enterprise development and socioeconomic development. The two organisations are also critical of the fact that help is only being given to black entrepreneurs when all businesses have suffered during the pandemic. Hundreds of companies have closed.
- Read the full original of the report in the above regard by Linda Ensor at BusinessLive (paywall access only)
- Read Solidarity’s press statement in the above regard at Polity
Get other news reports at the SA Labour News home page