Madam Speaker
Honourable Premier
Honourable members
Heads of Departments and other senior public officials
Ladies and gentlemen
All protocol observed
It gives us pleasure to stand before this esteemed House to present the KwaZulu-Natal Business Rehabilitation Trust Fund Act Repeal. One of the enduring legacies of the dying days of the apartheid regime is the damage that was occasioned by the wave of violence which swept through the province of KwaZulu-Natal.
Not only did the violence affect all the social aspects, but it resulted in many businesses, particularly in the townships and in rural areas of our province, being destroyed. As many of honourable members are aware, one of the boldest move that our government took about a decade ago, in order to assist businessmen who were adversely-affected by violence which left a trail of destruction at the height of apartheid repression was to start the KZN Business Rehabilitation Trust Fund.
The aim of the fund, which was managed by our Department of Economic Development, was to assist these businessmen to get back on their feet, but more importantly it was:
- to enable owners of such affected business to raise finance to rehabilitate their business or to start new business
- to arrange trade credit facilities in order to obtain operating capital to facilitate trading
- to provide support and training in respect of financial and general business managementmatters to owners of affected business, and
As many of you, honourable members, are aware the victims were expected to make applications to us after which they were processed and a decision taken to assist the applicants.
However, months down the line, it came to light that the fund was being abused by some unscrupulous people who were making fraudulent applications. After an investigation was launched, these suspicions were confirmed to be true.
A cabinet decision was then taken to close the fund. However, because the fund was created thorugh legislation, it has necessitated that the KZN Business Rehabilitations Trust Fund Act should be repealed. This will pave the way for our department to wind up all the matters pertaining to the fund.
It is because of this reason that today our department is presenting the KwaZulu-Natal Business Rehabilitation Trust Fund Act Repeal before this House. The purpose of the bill is to disestablish and dissolve the trust fund and to further make provision for the transfer of fund’s assets and liabilities to the KwaZulu-Natal Department of Economic Development and Tourism.
As many of you are aware, the monies from the trust fund have been transferred to the Small, medium and micro-enterprises (SMMEs) component of Ithala Bank.
It therefore gives us pleasure to present the KwaZulu-Natal Business Rehabilitation Trust Fund Act Repeal before this house.
I thank you.
Source: Department of Economic Development and Tourism, KwaZulu-Natal Provincial Government
