Luminance loan: DA requests explanation
The DA will today request that the CEO of the National Empowerment Fund (NEF), Philisiwe Mthethwa, be summoned to Parliament to explain the circumstances around the granting of a R34 million loan to one of South Africa's most successful businesswoman for a luxury boutique in Johannesburg. Providing financing for extravagant businesses that cater for the super-wealthy does not appear to be part of the NEF's mandate. Mthethwa must now come and explain the NEF's investment rationale before Parliament (see Sunday World report).
According to reports in the weekend press, the NEF extended a loan of R34 million to Ms Khanyi Dhlomo and her business partners to finance the opening of a luxury boutique, Luminance. The lavish opening was reportedly attended by a number of high level politicians including the NEF CEO, her husband Police Minister Nathi Mthetwa and Gauteng Premier Nomvula Mokonyane amongst others.
The NEF's role is to promote Broad-Based Black Economic Empowerment (BBBEE) initiatives through financial and non-financial support to black-owned businesses. As a government funded developmental finance institution - capitalised in 2005 by Government to the value of R2.4 billion and now again seeking recapitalisation from Treasury - the NEF has a duty to ensure that its operations are aimed at supporting genuine Broad-Based projects rather than narrow projects that cater to the super-wealthy elite.
The NEF should be committing itself to initiatives that stimulate economic growth by providing support to small business owners to help them start up, grow and create jobs in the sectors where our economic growth prospects rely on the success of first-time business owners and Small Medium and Micro-sized Enterprises (SMMEs).
Growing the economy and creating jobs remain the DA's top priorities. Parliament has a responsibility to ensure that all government institutions align themselves with our objectives of creating sustained economic growth and eliminating unemployment and poverty.
Where there is any doubt as to whether these objectives are being pursued by government institutions those responsible must be held accountable for their actions. The NEF must now come to Parliament and explain.
Statement issued by Dr Wilmot James MP, DA Shadow Minister of Trade and Industry, July 29 2013
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