The Portfolio Committee on Small Business Development has received a legal opinion from Parliament’s Constitution and Legal Services Office on the process to be followed in finalising the appointment of the Small Enterprise Ombud, while also raising serious concerns about the performance of the Tourism Equity Fund.
The legal opinion, presented to the committee during its meeting on Wednesday, advises that where concerns arise about a specific shortlisted candidate, these should be addressed in a targeted and procedurally fair manner. This includes affording the affected candidate an opportunity to respond, either in writing or in person, without necessarily reopening the entire interview process.
Committee Chairperson Ms Masefako Dikgale welcomed the clarity provided by the legal services office. “The guidance we have received assists the committee to proceed in a manner that is both legally sound and procedurally fair, while safeguarding the credibility of the appointment process,” she said.
The opinion further cautions that while there is no legal prohibition against re-interviewing all shortlisted candidates, doing so could lead to unnecessary costs, delays and potential legal risks, including perceptions of bias or procedural unfairness.
Ms Dikgale emphasised that the committee would proceed with due care. “We are committed to ensuring that any outstanding concerns are addressed in a focused and transparent manner, without compromising the integrity of the process or exposing Parliament to avoidable risks,” she said.
Members of the committee indicated that they will in due course consider the implications of the legal opinion as it determines the most appropriate way forward in finalising the committee’s report on the Ombud appointment.
In the same meeting, the members received a briefing from the Department of Tourism on the Tourism Equity Fund, where they expressed serious concern over the fund’s underspending of R361 million.
Members held a view that the underutilisation of the fund undermines its intended purpose, saying it is unacceptable that resources earmarked to advance previously disadvantaged individuals remain unspent. “This practice delays transformation and limits opportunities for inclusive participation in the tourism sector,” said committee member Ms Carol Mafagene.
Members noted that the fund is a key instrument to promote inclusive growth and transformation and stressed that urgent corrective measures are required to ensure that it delivers on its mandate.
At the same time, the committee unanimously welcomed the decision to place the Tourism Equity Fund under the Small Enterprise Development Finance Agency (SEDFA), expressing optimism that this would improve efficiency and accelerate the disbursement of funds.
Ms Dikgale said: “We expect that the transfer of the fund to SEDFA will bring about the necessary administrative and operational improvements to ensure timely support to qualifying beneficiaries.”
To strengthen oversight, the committee will invite SEDFA to appear before it to present a clear and implementable plan for the effective disbursement of the fund.
Members reaffirmed their collective commitment to upholding a transparent, fair and credible process in their work, in line with the Constitution and applicable legislation, while ensuring that government programmes deliver meaningful economic transformation.
Justice Molafo
26 March 2026
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