The fund was aimed at offering strategic loans and empowering businesses to secure trading stock, equipment, machinery and working capital. This initiative was promised to business owners in an attempt to foster entrepreneurship and propel economic growth in Gauteng’s townships.
However, the intended beneficiaries say that have not received any support or funding after they were promised payment by an intermediary of the department, Family Tree Holdings.
Small business owners and township entrepreneurs, who are intended beneficiaries of the fund are up in arms. They claim that they have been duped by government, after having not received a single cent, that was promised to them in 2022.
58-year old Gertrude Thilijana from Thokoza, says government has failed on its promise to uplift the township economy.
“They promised me groceries for R50 000, they promised me a money machine and they promised me money for airtime and all of that and until now, there is nothing. It is only the painting that is finished. I lost too much; I am definitely sure it is more than R1 000. I want government to just help me, I am suffering, I really suffer but I am trying.”
Another intended beneficiary, Neo Motaung, says he has been taken from pillar to post in his quest to get answers from both the department and Family Tree Holdings.
“ When they responded to me, it was that they were going to investigate and they will come back to me and make interviews with these spaza shop owners. And unfortunately, that never happened. The only thing that happened was delaying tactics. Nothing really happened. They are there sitting comfortably, and they never came to any of these SMMEs or spaza shop owners to ask if they have received any help from Family Tree and they have never done that.”
Build One South Africa leader, Mmusi Maimane, has called for an urgent forensic investigation into allegations of corruption at the fund.
“We are demanding three things; a forensic investigation must be done so that we know where the money is and I will be writing to the President to request that an SIU proclamation be done and we demand to know where all the funding went. Secondly as we lodged a Public Protector complaint, I will be following up to make sure that it is followed up, so we get to the acts of corruption. Lastly, each of these entrepreneurs have put money into either the joining of the business forum and contribution to its upkeep. And we demand that money be paid back to them and the true beneficiaries of the fund are the actual ones rather than the politicians.”
The Gauteng Department of Economic Development has refuted the corruption claims. The Department’s Matopane Masha says their intermediar , Family Tree Holdings, is still finalising the list of successful applicants, before payments can start.
“Family Tree was appointed after a due diligence process was conducted independently and they were appointed as an intermediary on the Kasi Mnotho Fund where they contributed R50 million and government contributed R50 million. But as of now, they haven’t disbursed any money. They are a lot of applications that they have received and those applications, once they are processed and approved, the SMMEs will be funded. So, the R100 million fund is still there and it has not been disbursed yet,” says Masha.