DA to challenge government’s race-basedCovid relief for SMMEs in court
29 April 2020
The DA has given the Minister for Small Business Development, Khumbudzo Ntshavheni, until 17:00 today, Wednesday 29 April 2020, to clarify her statements regarding the use of B-BBEE as evaluating criteria for government’s SMME Debt Relief Fund. If she does not respond satisfactorily by this deadline, the DA will take legal steps to ensure that all South Africans are treated equally in qualifying for government’s Covid-19 relief measures.
This follows the minister’s about-turn yesterday during a joint meeting of the Portfolio and Select Committees for Small Business Development where, upon being questioned by DA MP Tim Brauteseth, she confirmed that all applications to the SMME Debt Relief Fund would be evaluated using B-BBEE principles. Earlier, similar selective, race-based relief criteria were announced for both the tourism and agriculture sectors.
On 24 March Minister Ntshavheni dismissed reports of race-basedCovid relief for SMMEs as “fake news” following a leaked document indicating this requirement. However it soon became clear that the document was not fake, and was confirmed to have been an earlier draft of the Department’s proposed regulations. The Department quickly assured South Africans that all applicants would be considered equally, regardless of race.
Yesterday’s about-turn by the minister makes a mockery of government’s SMME relief measures, and is an insult to thousands of struggling small business owners who not only contribute hundreds of millions of Rands in tax revenue, but who also employ thousands of people who now stand to lose their jobs, many of whom are black.