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Small businesses kept waiting as GEP fails to allocate the full R100 million Rebuilding Fund

It is extremely disheartening that the Gauteng Enterprise Propeller (GEP) has only disbursed R2 million of the allocated R100 million of the Rebuilding Fund which is meant to assist small businesses affected by the looting and unrest in July, as well as the Covid-19 lockdown.

Many small businesses rely on this assistance offered by government as their stores were destroyed, to the point where they would have to fix the damage caused by the violence and looting, while also needing to procure more stock.

Furthermore, they would also no need to find an alternate way of paying their workers as they were unable to trade during the violence that erupted earlier this year.

The longer it takes for the money to be disbursed to qualifying small businesses, the sooner they may be forced to permanently close their doors, putting more strain on our economy and contributing to the rise in the Gauteng unemployment rate.

This is of deep concern to the DA, as we cannot afford to have more people face unemployment because of the ineptness of the provincial government.

It is becoming clearer by the day that the GEP lacks the necessary skills and expertise needed to ensure that the Rebuilding Fund does exactly what it is meant to do.

The GEP should source temporary expertise from the Industrial Development Corporation to assist in disbursing the funds as quickly as possible. In doing so, it will ensure that small businesses can get back on their feet and start to once again contribute to the Gauteng economy.

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Less money for small business recovery with establishment of duplicate entity to stimulate township economy

The Democratic Alliance (DA) in Gauteng is concerned that the proposed Gauteng Township Economy Development (GTED) Bill will be duplicating a function of the Gauteng Enterprise Propeller (GEP) and will be a waste of such money that could rather be used to assist small businesses recover from loss and damages following the looting and riots in the province last week.

Currently the draft bill makes provision for the establishment of a Development Fund and board that will not have a CEO.   The DA believes that this is a waste of taxpayers’ money and that the GEP is more than equipped to help grow the township economy, and save so many livelihoods that are at great risk of being destroyed.

The GEP’s mandate is to ensure that small businesses and entrepreneurs are given the support they need to help grow their business. However for a long time now, this entity has been failing on its core mandate.

It is critical now more than ever that the GEP fulfils its mandate given the recent looting and vandalism that has taken place across Gauteng as well as the economy-killing Covid-19 regulations that have forced many businesses to close their doors.

The township economy plays a pivotal role in the creation of jobs that people in the province are in desperate need of.

While the main aim of the GTED is to help stimulate economic growth in our township, we cannot allow our hard-earned taxpayers’ money to be wasted on frivolous state-owed entities.

Public comments on the bill close on 31 July 2021.

The DA is encouraging all small businesses to comment on the GTED bill, so that all inputs can be taken into consideration before the bill is signed into law. Comments can be sent to the DA on haveyoursay@da.org.za. 

We will also be submitting our inputs on this bill to ensure that the GEP is considered as an entity to execute this bill’s mandate. We will not allow the current government to waste taxpayers’ money on the establishment of new entity that does not have value for money, while innocent South Africans continue to lose their jobs, with no relief from government.

Local Government Elections are coming up in 2021! Visit check.da.org.za to check your voter registration status. 

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DA welcomes commitment by MEC Tau that R200 million of GEP funds will be used to assist small businesses affected by looting and vandalism

The Democratic Alliance (DA) in Gauteng welcomes the commitment made by the MEC for Economic Development, Parks Tau, that the bulk of the R250 million that the Gauteng Enterprise Propeller (GEP) has been sitting on since last year, will be used to assist small businesses that were affected by looting and vandalism last week.   

In a social media post on Twitter in response to our call for GEP funds to be used to assist small businesses impacted by the looting, the MEC indicated that R200 million will be used to assist small businesses affected by the unrest.   

According to the MEC, the details of exactly how to access these funds will be finalised by the end of July.   

The DA is calling on the MEC to ensure that these funds are made accessible to small businesses as soon as practically possible after 31 July 2021.   

In addition, we urge the MEC to ensure that the eligibility criteria include saving as many jobs as possible and getting the Gauteng economy going.   

Our economy has already been brought to its knees by the harsh Covid-19 regulations which have led to a number of small businesses having to close shop or retrench staff as they were unable to afford to keep their full workforce employed.   

The announcement by the Economic Development MEC is a step in the right direction and will go a long way to ensuring that our small businesses are able to get back on their feet again, salvage some jobs and get the wheels of the provincial economy turning again.   

Local Government Elections are coming up in 2021! Visit check.da.org.za to check your voter registration status.

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GEP’s R250 million must be immediately released to Gauteng small businesses affected by looting and violence

The Gauteng Enterprise Propeller (GEP) should immediately release the R250 million they have been sitting on since last year to assist small businesses that have been damaged and looted during the recent unrest that flared up in the province.

In many cases, small businesses affected may not have adequate insurance or no insurance at all to cover the damage and loss of stock incurred, which may result in their permanent closure, having already endured economic-killing lockdown restrictions.

Township economies have suffered a near-fatal blow from the looting and destruction of property. Almost all jobs lost from targeted malls employed residents in affected townships. So many more households are set to face hard times ahead, wondering how they will get food onto the table.

The R250 million will go a long way to helping small businesses get on their feet again, salvage some jobs and get the wheels of the provincial economy turning again.

In addition, the government should be working with communities and business chambers to ensure that there is security for businesses in the province, especially those that invest in the townships.

The looting and destruction will also have a negative impact on investment in townships, with the private sector hesitant on investing in affected areas again.

Small businesses affected by the looting deserve all the support they can get from the government as the township economy is a key driver of job creation in the province. We will continue to push the GEP to provide support to small businesses so that economic recovery in the province can be realised.

Local Government Elections are coming up in 2021! Visit check.da.org.za to check your voter registration status.

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MEC Tau fails to take responsibility for the GEP’s inefficiencies

It is extremely concerning to note that the MEC for Economic Development, Parks Tau is now shifting the blame to the Auditor General’s (AG) office for the Gauteng Enterprise Propeller (GEP) not submitting its financial statements on time for the 2019/20 financial year.

According to a reply to my questions tabled in the Gauteng Provincial Legislature, MEC Tau claims that the GEP’s financials were due to be audited in September 2020, but the AG had requested more time to complete the audit due to their internal quality assurance processes and challenges related to Covid-19. The audit was only completed in February this year.

It is unfortunate that the MEC chooses to not own up to the inefficiencies that clearly exist within the GEP, which is what led to the entity not submitting its financial statements timeously.

During a committee meeting, the AG indicated that the GEP had submitted its financial statements without evidence. It is clear that the new CEO has a hard task ahead of him in ensuring that the rot in this entity is cleaned up and that the GEP starts delivering on its core mandate to assist small businesses in the province.

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SIU to investigate the GEP over alleged mismanagement and corruption, most of which occurred under MEC Maile

The Democratic Alliance (DA) in Gauteng welcomes the proclamation by President Cyril Ramaphosa, that the Special Investigations Unit (SIU) will be investigating the Gauteng Enterprise Propeller (GEP).

According to the proclamation issued, the SIU will be investigating the following allegations:

  • Maladministration in connection with the affairs of the Agency;
  • Improper or unlawful conduct by officials or employees of the Agency;
  • Unlawful appropriation or expenditure of public money or property;
  • Unlawful, irregular or unapproved acquisitive act, transaction, measure or practice having a bearing upon State property;
  • Intentional or negligent loss of public money or damage to public property;
  • Offence referred to in Parts 1 to 4, or section 17, 20 or 21 (in so far as it relates to the aforementioned offences) of Chapter 2 of the Prevention and Combating of Corrupt Activities Act, 2004 (Act No. 12 of 2004), and which offences were committed in connection with the affairs of the Agency;

Or unlawful or improper conduct by any person, which has caused or may cause serious harm to the interests of the public or any category thereof.

The investigation will take into account any unlawful activities that took place between 1 January 2017 to 1 April 2021, which falls under the period when Lebogang Maile was the MEC for Economic Development and Leah Manenzhe was the acting CEO.

For the longest time, the DA has been calling on the MEC for Economic Development and Premier David Makhura to investigate the GEP, as money meant to support small businesses has not been seen by the rightful beneficiaries.

Furthermore, we have long maintained that the GEP is riddled with corruption and inefficiencies, resulting in very little support for small businesses in Gauteng.  Government has a responsibility to create the right environment for small business to flourish and create employment opportunities for the unemployed, especially the youth.

We will be monitoring the progress of this investigation to ensure that it is concluded timeously with positive results, including the naming of any officials who were involved in the misuse of public funds.

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Gauteng Enterprise Propeller fails to submit performance, financial statement for 2019/20

The Democratic Alliance is concerned that the Gauteng Enterprise Propeller (GEP) has failed to submit its annual report for the 2019/20 financial year.

The Auditor-General’s office has picked up issues with the financial and performance reports of the GEP and has asked them to correct these reports before expressing an opinion.

This is extremely worrying as the instability and non-performance of this entity is having a negative impact on small businesses in the province. The GEP is still sitting on R250 million that has been earmarked to assist small businesses in Gauteng that faced hardship during the Covid-19 pandemic.

This amount was allocated during the adjustment budget in July. To this day, the GEP has failed to spend a cent towards assisting small businesses.

In addition, more than three years later, the GEP is still without a permanent Chief Executive Officer and Chief Operations Officer and only have officials acting in these positions.

It is clear that this entity is failing on its mandate to promote, foster and develop small businesses in Gauteng. The only way in which we are able to combat the high unemployment rate in the country is if there is investment in these businesses.

If the newly appointed MEC for Economic Development, Parks Tau is serious about rebuilding the Gauteng economy, then he must sort out the GEP once and for all.

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GEP uses Covid-19 pandemic as excuse for not meeting youth training targets

The Democratic Alliance (DA) in Gauteng is deeply concerned that the Department of Economic Development in the province is using the Covid-19 pandemic as one the reasons why it did not meet its target set for the Youth Accelerator Programme.

This information was revealed to me by the MEC for Economic Development, Winifred Mosupyoe to my written questions tabled in the Gauteng Provincial Legislature.

In the department’s fourth quarter report for the 2019/2020 financial year it was revealed that the target set for this programme which is administered by the Gauteng Enterprise Propeller (GEP) was only partially met.

For the previous financial year, the department had a target of training 450 youth as part of the Youth Accelerator Programme, but the department only managed to train 239 youth.

This trend of not meeting critical training targets is becoming a norm for GEP.

Training programmes like the Youth Accelerator Programme is important as it will equip our youth with skills needed to find sustainable job opportunities or to become entrepreneurs.

The constant underperformance of this entity has a negative impact on the fulfilment of its core mandate which is to promote, foster and develop small enterprises in the province.

Entities like GEP play an important role in boosting the economy and helping particularly the youth to establish their own businesses, which in turn allows them to create job opportunities in their own communities.

The DA will be closely monitoring the measures put in place by GEP to ensure that they meet the targets set for the Youth Accelerator Programme for this financial year.

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GEP fails to assist youth as part of its Youth Accelerator Programme

It is concerning that the Gauteng Enterprise Propeller (GEP) did not meet its target of assisting 75 youth through the Youth Accelerator Programme.

This information was revealed in the first quarter report for the Department of Economic Development for the 2019/2020 financial year.

According to the quarterly report the Youth Accelerator Programme is supposed to provide unique and tailored non-financial support products and services that propel SMMEs and Cooperatives into the mainstream economy and revitalise township economies.

The main aim of this programme is to assist the youth with employment opportunities, training, mentorship and skills development opportunities.

According to the report, the reason for not assisting any of the youth was because there was a delay in Supply Chain Management processes to appoint a service provider. The tender was advertised on 1 February 2019 but had to be cancelled to address gaps identified by Probity Auditors and the Bid Evaluation Committee.

These skills are critical if the Gauteng Provincial Government (GPG) is serious about ensuring that township economies are revitalised. This will help small businesses to provide goods and services not only in the townships where they live, but could also allow them to provide goods and services to government.

The Democratic Alliance (DA) will be tabling questions in the Gauteng Provincial Legislature to the MEC for Economic Development, Kgosientso Ramokgopa to ascertain if this tender will be re-advertised and by when this process will be concluded.

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Plan to convert GEP to Provincial Bank is reckless

by Adriana Randall MPL – DA Gauteng Shadow MEC for Finance

The Democratic Alliance (DA) does not support Premier David Makhura’s call to convert the Gauteng Enterprise Propeller (GEP) into a Provincial State Bank.
GEP has been plagued by complaints of maladministration and corruption.
However, these allegations have been ignored by the MEC for Economic Development, Lebogang Maile, as nothing has been done to remedy the situation.
Furthermore, GEP is still without a CEO for almost two years now and it does not seem like there are any immediate plans to fill the position.
The acting CEO, Leah Manenzhe has been accused of intimidation and abuse of power.
Given the current situation at GEP, it is not viable for this state-owned agency to be turned into a Provincial State Bank.
Should GEP be turned into a Provincial State Bank, this could likely result in another VBS Mutual Bank situation.
Two municipalities in Gauteng have invested with VBS bank and now find themselves in dire financial straits, as it is unlikely that they will recover the money they’ve invested.
International research shows that public sector banks have performed poorly according to financial measures, such as returns on equity or assets and the extent of non-performing loans.
In addition, state-owned financial institutions not only pose systemic risks to their economies but also threaten governments with potential liabilities and thus there is often a need for a rise in taxes or reduction in government spending to make up for such financial shortfalls.
It is clear that the Premier did not consider the challenges faced by GEP before announcing plans to convert it into a Provincial State Bank.
I will be tabling questions in the Gauteng Provincial Legislature (GPL) to ascertain amongst other things, what the lending policies or criteria of the State Bank will be, how this differs from commercial banks and what the position of the State Bank will be regarding non-performing loans.