Confirmed: Guideline that government will only help ‘51%-black-owned companies’ is fake


Confirmed: Guideline that government will only help ‘51%-black-owned companies’ is fake

Small companies are bearing the brunt. File picture: iStock

Numerous folks and teams, together with AfriForum, have already launched a marketing campaign in opposition to the ‘racist coverage’, however government advises that it is fake information.

The government’s web site set as much as present aid for small, to medium-sized and micro companies went live on Tuesday morning and many candidates claimed to have run into the beforehand unpublicised requirement that with the intention to be granted state help a enterprise would should be majority black owned.

However, the division of small enterprise improvement’s spokesperson, Sarah Mokwebo, confirmed to The Citizen on Tuesday morning that this was fake info.

Numerous folks have been tweeting their outrage in regards to the false truth, and civil rights organisation AfriForum even launched a marketing campaign in opposition to what its CEO, Kallie Kriel, referred to as a “racist coverage”.

Their assertion was written in Afrikaans.

They claimed to have seen a doc from the division itemizing necessities that companies wanted to satisfy earlier than they’d be eligible for monetary help from government’s Covid-19 emergency fund, together with that they need to be 51% black owned.

However, it’s possible that AfriForum was fooled by the quite a few faked screenshots that have been doing the rounds on Twitter and WhatsApp.

“One of those is that a enterprise have to be 51% black-owned to qualify,” mentioned AfriForum – incorrectly.

AfriForum even threatened to move to court docket to struggle the necessities, they usually referred to as for donations.

It was introduced days in the past that government can be helping small companies impacted by the coronavirus by way of a debt aid fund following President Cyril Ramaphosa declaring a state of nationwide catastrophe in response to the Covid-19 international pandemic.

On Monday night time, Ramaphosa introduced extra stringent measures, together with a 21-day lockdown that would successfully make it harder and even not possible for almost all of companies within the nation to function. Only folks deemed important can be allowed to maneuver extra freely.

The division of small enterprise improvement mentioned final week in a press release that it was finalising its SMME help intervention comprising of a Debt Relief Fund and a Business Growth/Resilience Facility.

“The Debt Relief Fund is aimed toward offering aid on present money owed and repayments, to help SMMEs in the course of the interval of the Covid-19 State of Disaster,” it mentioned.

At the time, nothing was talked about about black financial empowerment pointers enjoying a component, and this has remained the case. People are, nonetheless, required to listing their BEE and empowerment credentials by means of filling in numerous fields on the applying web site. It’s unclear how this info will be used.

“This facility will help entities to amass uncooked materials, pay labour and different operational prices. All these interventions will be structured to match the patterns of the SMMEs’ money flows, in addition to the extent of the impression suffered,” mentioned the division.

For small companies to be eligible for help underneath the Debt Relief Fund they must display a direct hyperlink to the impression or potential impression of Covid-19 on their enterprise operations.

“The division’s insistence on using the SMME database is based mostly on the necessity to monitor, monitor and strengthen the impression of enterprise improvement help to SMMEs by each government and the personal sector throughout this era and past,” the division mentioned final week.

It added that it might be guided by the National Command Council in figuring out the sectors deemed severely impacted, with the intention to qualify for the Debt Relief Fund.

The web site has been experiencing some demand points on Tuesday.

In future, the database will even be used to use for each monetary and non-financial help, entry details about enterprise alternatives and market entry help.

The tweets beneath have been reacting to the faked “government doc”:

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live at 2020-03-24 08:28:37



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