By Odwa Bafana Mkentane
The Portfolio Committee on Small Business Development says it supports stricter controls and due diligence measures to ensure that the Spaza Shop Support Fund reaches its intended beneficiaries.
The committee’s comments follow allegations that funds had been channelled to spaza shops operated by foreign nationals through South African fronts.
During an engagement with the Department of Small Business Development and the Small Enterprise Development Finance Agency on August 12, the committee was briefed on measures being implemented to verify beneficiaries and ensure that support reaches qualifying South African citizens operating legitimate spaza shop businesses.
The committee Chairperson, Masefako Dikgale, said the committee was encouraged by the assurance that applications are subjected to stringent verification processes before any funds are disbursed.
“The committee welcomes the robust internal controls put in place by the department and Small Enterprise Development and Finance Agency (SEDFA) to protect public funds and ensure that the Spaza Shop Support Fund benefits the South Africans it was established to support. Where an application reveals an operator mismatch or other indicators of fraud, that application must not proceed to disbursement.” Said Dikgale.
The investigation identified verified cases of business fronting, beneficiary mismatches, fraud and misrepresentation, including instances where South Africans were registered as licence holders or beneficiaries while foreign nationals operated the businesses.
“We will continue to exercise oversight over the department and SEDFA to ensure that every rand intended for qualifying South African entrepreneurs is protected and accounted for. Support must reach genuine beneficiaries, not fraudulent fronts. The committee will remain vigilant against any attempt to circumvent the rules or defraud the state,” she said.
Photo: VOCfm
