Khanyi Dhlomo must pay back the NEF the R34m - EFF

Fighters' question role of Police Minister Nathi Mthethwa's wife in approving loan for Hype Park Corner boutique


29 July 2013

It has come to the attention of Economic Freedom Fighters that the National Empowerment Fund (NEF) has granted Khanyi Dhlomo R34 million to open an exclusive elite Boutique (shop) of overpriced clothes in Hyde Park Corner, Johannesburg (see Sunday World report). Like many South Africans, EFF hold Khanyi Dhlomo in high regard because until now, she had worked her way up and developed her Career without questionable money from government. The manner in which the R34 million was approved by the wife of Police Minister Nathi Mthethwa, who is the current Chief Executive Officer (CEO) of the NEF is questionable.

How on earth can a National Empowerment Fund in a country that has deep rooted poverty, unemployment and inequalities prioritise luxury and conspicuous consumption driven Boutique at the expense of financing real developmental and entrepreneurship programmes. Khanyi Dlhomo and her partners in the luxury Boutique surely did not need R34 million to open the shop, which sells dresses for R100 000 per item.

They can use their access to many opportunities to utilise private finance, and leave public money to be given to empower poor people. The NEF is also grossly irresponsible and inconsiderate to grant so much money for the opening of a shop for the elite while many people do not have access to opportunities. it has now defined itself as a National Enrichment, not Empowerment Fund.

The fact that the newly-weds, Police Minister Nathi Mthethwa and his wife, who is the CEO of NEF attended the opening of the shop is a sign that they are celebrating squandering of public money and the greed of individuals. EFF wonders whether there was never any direct or indirect financing of the Police Minister's wedding by those who received the R34 million enrichment money from the NEF.

We will never know because the current government has perfected hiding information and claiming no knowledge of violation of laws by public servants and representatives. Just recently, the Police Minister claimed that he was unaware who paid for the Security Wall around his private residence in KwaZulu Natal, when the information came out clear that it was financed by the Intelligence slush fund.

EFF advises Khanyi Dhlomo to distance herself from possibly corrupt politicians and pursue her business interests without using public funds that are questionably granted. She has thus far done very well to inspire confidence amongst many young people in South Africa, and should not water down her reputation by accepting questionable money. As a considerate and caring lady, EFF request that Khanyi Dhlomo return the R34 million she was given by the NEF so that the NEF can allocate the money to useful projects, not a luxury Boutique for the elite.

EFF will give Khanyi Dhlomo exactly 14 days to return the money to the NEF, and failure to do so will prompt us to report the granting of the loan to the Public Protector who should investigate whether there are no previous relations between her and the wife of Nathi Mthethwa and further investigate whether there was necessity to grant such a loan for a shop that will contribute nothing to South Africa's developmental programmes.

The EFF's attitude to this issue is consistent with one of our 7 non-negotiable cardinal pillars that calls for "Open, accountable, corrupt-free government and society without fear of victimisation by state agencies". EFF will consistently speak against all manifestations of rapacious and callous squaring of public resources.

Statement issued by the Economic Freedom Fighters, July 29 2013

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