Home Press Releases Archived 2013 SACTWU outraged at the NEF funding for the rich
SACTWU outraged at the NEF funding for the rich PDF Print E-mail
Wednesday, 31 July 2013 12:39


PRESS RELEASED: IMMEDIATE


The COSATU-affiliated Southern African Clothing & Textile Workers’ Union (SACTWU) is outraged at reports that the National Empowerment Fund (NEF) has made available R34m  to a consortium of Ms Khanyi Dhlomo, to open up a boutique for the rich in Hyde Park Corner, focusing on exclusive and expensive imported clothing, textiles and leather goods.

We are of the view that this  is completely inappropriate in a country where the main challenges are to tackle our triple crisis, of poverty, inequality and unemployment.  We fail to understand how this action by the NEF tackles our triple crisis meaningfully and how it helps to promote local jobs in the clothing, textile and leather industry.

We are particularly disturbed that the NEF appears to have funded a business  which undermines local procurement of clothing, textiles and leather goods and hence promotes local job losses.

The NEF is an agency of the dti. In this regard, on its website the dti explains that (our underlining):

“The NEF's role is to support B-BBEE. As the debate around what constitutes meaningful and sustainable B-BBEE evolves, the NEF anticipates future funding and investment requirements to assist black entrepreneurs and communities achieve each element of the Codes of Good Practice. These include a focus on preferential procurement, broadening the reach of equity ownership, transformation in management and staff, while preventing the dilution of black shareholding.

We call for an immediate investigation of this matter, in particular since it promotes de-industrialisation, contrary to our national development agreed priorities as set out in the Industrial Action Plan.

This is a national disgrace and requires immediate investigation. In this regard, we warmly welcome and fully support the Minister of Trade & Industry’s call for a full investigation into the matter.

We demand that such an investigation be commenced with and concluded as soon speedily as possible.

We need the NEF to help the poor, to promote local industry and to help fight unemployment in a meaningful manner, not to promote the interests of the rich.

Issued by

Andre Kriel
SACTWU
General Secretary

If further comment is required, kindly contact SACTWU’s National Organising Secretary, Chris Gina, on office number 031 3011351.