Da Condemns R100 Billion Transformation Fund Proposal

The Democratic Alliance DA has criticized Department of Trade, Industry and Competition DTIC Minister Parks Taus proposal to establish a R100 billion Transformation Fund aimed at supporting black-owned businesses.

The DA has described the move as a unilateral and irresponsible policy decision that undermines the Cabinet and the Government of National Unity.

The fund, to be administered by the National Empowerment Fund NEF, is intended to bolster black businesses as part of DTICs economic transformation agenda.

DA spokesperson on Trade, Industry and Competition, Toby Chance says, So, the first objection is that that will require a money bill from parliament, to raise the money because all monies that come from anybody, into the state coffers have to go through the national revenue fund which is something that the Treasury has to manage. So, theres no indication yet, of the governments plan to do that and even if they do, it means that essentially companies are handing over another 3 in tax to the state. Chance.

He adds: The second objection is that multi-national companies who dont abide by the ownership provisions of the BEE code, in other words, they dont have black shareholders, have to then hand over equivalent to 25 of the value of their South African operations, into this fund which could be again, in the billions."