Parliament, Wednesday, 23 May 2018 – The Portfolio Committee on Small Business Development has expressed disappointment at the lack of adequate support by department to the 12 Abalimi Agricultural Cooperatives which are the cooperatives’ pilot project in KwaZulu-Natal.
The committee understands that although the Abalimi cooperatives were initially funded R350 000 each by the department through its Cooperatives Incentive Scheme (CIS), the funds were insufficient to get them off the ground.
Subsequently, the committee has been briefed that Minister Lindiwe Zulu intervened in the interest of the cooperatives, but officials within the department defied her executive order.
“We are appalled by this information and expects a report on the consequences faced by officials who are suspected to be the culprits. The funding of these cooperatives is in line with the ‘pro-poor’ agenda of the governing party in this country and that programme cannot be hamstrung by officials,” said Ms Ruth Bhengu, the Chairperson of the committee.
The committee further instructed the department to populate a database of all failed cooperatives that it funded and ascertain the reasons for such failures.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON SMALL BUSINESS DEVELOPMENT, MS RUTH BHENGU.
For media enquiries or interviews with the Chairperson, please contact Committee’s Media Officer:
Name: Mr Justice Molafo
Tel: 021 403 8444
Cell: 081 424 7481
Email: jmolafo@parliament.gov.za
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