Did the DTI give money to an ANC front?
7 December 2016
The DTI’s adjustment budget contains a R200 000 payment to an organisation called the Progressive Youth in Business, a group which is housed at Luthuli House in the Treasurer General’s office, and which is openly an ANC affiliated group. (See for example their website, www.ancpyb.org ). Did the ANC PYB receive this money? That is the simple, straightforward question that the DTI refuses to answer directly.
In a reply to a Parliamentary question about this payment, Minister Rob Davies makes no reference to the ANC PYB, saying that a lesser payment was made to a company called Regoapele Capital. This company is publicly linked to the ANC PYB.
The Minister’s reply is contradicted by a note from the National Treasury which says that the payment was indeed made to the PYB, and it is contradicted by the Adjustment Budget itself, which lists the ANC PYB as the beneficiary of the payment. The Minister’s evasiveness, and refusal to offer a full and comprehensive explanation of the differing information, leaves the impression that someone is being dishonest. Either the Minister is being misled by his own Department, or he is not being honest with me.
It is obviously a cause for serious concern that public funds, no matter how small the amount, may have been directed to the ANC. In a statement this morning, Minister Davies called these claims “outrageous”. If they are, he should provide a full explanation of the payment and the matter will be closed. If he will not do that, then we will continue to pursue this until we find the truth.
I will ask that the Minister and the Director General appear before the Portfolio Committee in early 2017 to explain this payment in person, and have submitted new Parliamentary questions to establish the following information:
- The Minister's reply says that a “virement of R200 000 was requested”. Did the ANC PYB request this adjustment?
- The Minister’s reply says that R100 000 was allocated to Regoapele Capital and the “remaining R100 000 will be used for other strategic core functions”. The Department should provide a specific break-down of what this remaining R100 000 will be used for, and who or which organisations will receive all or part of it.
- What was the involvement of the ANC PYB in the application for or awarding of this grant, and why did the adjustment budget make reference to the PYB?
- Was the R100 000 allocated to Regoapele Capital paid directly to that company, or to the PYB, or to another third party? The DTI should provide the proof of payment of these funds to show exactly who received them.
- What is the DTI’s “policy for sponsorships”? This document should be made public and placed on the DTI’s website.
- What process, specifically, was followed when considering the request for this virement, and was opportunity given to other deserving small businesses to apply for similar funding directly through the adjustment budget process?
- Why did the DTI not refer this application on to one of the development finance institutions that specialise in start-up businesses, like the National Empowerment Fund?
- Will the DTI make available to me all of the documentation relating to this virement to reassure me and the public that no public money has been used to fund the ANC PYB?
Corruption, no matter how small, is still corruption - and must be exposed. We will get to the bottom of this payment, and would advise the DTI to be frank and open, and not evasive.
Issued by Geordin Hill-Lewis, DA Shadow Minister of Trade and Industry, 7 December 2016
