Business fund under spotlight

A NORTHERN Cape businessman and chairperson of the Upington Youth Development Centre, Mxolisi Mazibu, has raised allegations of corruption relating to the distribution of grant fund allocations to business enterprises from the Youth, Women and Persons with Disabilities (YWPD) fund.

The Mme Reka Thusa Trust Fund is the implementing agent for the fund under the auspices of the Department of Youth, Women, Children, Persons with Disabilities, Communications and e-Government.

The patron of the fund, Northern Cape Premier Dr Zamani Saul, announced that R30 million would be allocated for enterprise funding during the launch in 2023.

Mazibu claimed that beneficiaries only received meagre portions of what was promised to them or “nothing at all”.

“The so-called successful recipients did not comply with the requirements, never applied or never existed, while one beneficiary is deceased,” Mazibu stated.

He added that while he qualified for a R150,000 grant, he had rejected the R30,000 that was approved for his company.

“I was approached by several applicants who related that they never received the funds that were promised. I am waiting for feedback from my lawyer.”

Mazibu said that 1,372 businesses in the Province received funding to a total value of R18 million, while the Frances Baard and ZF Mgcawu districts were “unaccounted for”.

“In Namakwa grants to the value of R2.1 million, in John Taolo Gaetsewe to the tune of R4.7 million and R9.1 million in the Pixley ka Seme District were paid out. What happened to the rest of the money?”

Mazibu said he believed that the unpaid funds were diverted to the ANC election campaign.

“It is alleged that a government employee, as well as the son of a board member of the Mme Reka Thusa Trust, were allocated grants from the YWPD fund, ahead of deserving businesses,” he added.

According to an online petition, small business owners in the ZF Mgcawu District highlighted “significant discrepancies” between the allocation of grants of between R100,000 and R150,000 that they applied for and the actual amounts received.

The business sector also questioned the unequal distribution of funding where some businesses, including “inactive and informal ones with questionable financials”, received grants.

The petition stated that while the premier had promised that “everyone would benefit”, several qualified entities who applied for the grant had not received their contracts yet.

“This is causing uncertainty and hindering our ability to operate effectively.”

The business owners believed that the criteria and decision-making process used to determine grant amounts had not been adequately communicated, leading to confusion and frustration among applicants.

The petition indicated that they were prepared to take legal action where they would seek intervention to ensure accountability and transparency in the administration of public funds.

They called for an independent and transparent review of how the grants were allocated, including an examination of the criteria used to select eligible businesses.

The CEO of the Mme Reka Thusa Trust Fund, Gladys Motshele, stated that allocations were paid according to a list provided to them by the Ministry of Youth, Women, Children, Persons with Disabilities, Communications and e-Government.

“As the implementing agents, we received R30 million and have paid out R30 million to qualifying enterprises throughout the five districts of the Province in a fair and transparent manner. Beneficiaries were selected throughout the Province by the Ministry in response to applications, that did not exclude anyone,” said Motshele.

She explained that funds were allocated for formal and informal businesses.

“Applicants are not guaranteed that they will receive the full amount that they applied for. We are committed to supporting all qualifying beneficiaries with the limited funds available. Some enterprises did not comply as they did not provide the necessary documents or did not fulfil the criteria.”

Motshele added that the allegations pointing to irregularities in the operation of the fund were “misguided and unfounded”.

She acknowledged that some delays occurred in the disbursements.

“This was as a result of various factors including a high volume of applications that had to be processed with a limited amount of staff. We ensured that due diligence was done for each application received. This careful attention was essential to guarantee that each entrepreneur used the funds effectively and responsibly.”

Motshele added that the monies of the successful beneficiaries were paid directly into business banking accounts.

“The trust will monitor expenditure on these funds while providing business support if needed.”

She stated that additional consultations and detailed checks were required before the funds were paid out.

“We also had to re-evaluate applications from beneficiaries who disputed their disbursements.”

Motshele encouraged anyone with evidence of irregularities to report it to law enforcement agencies.

“Political or related considerations do not in any manner whatsoever influence the process of the disbursement of funds. I do not know of any of the funds that were diverted towards the ANC election campaign.”

She encouraged beneficiaries to contact the trust directly for any queries or concerns.

“We remain steadfast in our commitment to address any insinuation or allegation of favouritism in the awarding of the funds.”