Anger over R6.6m Mamelodi car wash flop

schumi

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Pretoria - Two years after the launch of the multi-million rand Reitiretse Car Wash in Mamelodi, the dream sold by the then ANC-led City of Tshwane to the community has still not come into fruition.

The initiative was part of a package of projects being implemented by the city as part of its drive to revitalise the township economy, and thus reduce the high levels of unemployment and poverty.

The ANC project promised to create economic opportunities that would ensure meaningful participation by the previously marginalised in the mainstream economy.

The R6.6 million, state-of -the-art car wash was punted as a project to boost the township’s economy and create more than 50 jobs in its first year of opening.

More jobs would be generated as it continued to operate, the city said, but today the premises remain closed, with the structures falling apart and the locked gates showing no sign of life.

Dilapidated structures are clearly visible: the roof has caved in and part of the fence is collapsing. Some of the floodlights are damaged and there was no security personnel in sight when the Pretoria News went there earlier this week.

More at: http://www.iol.co.za/news/south-africa/gauteng/anger-over-r66m-mamelodi-car-wash-flop-10379255
 

CataclysmZA

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Skylar White ran a successful car wash and managed to launder millions of dollars through it without the place closing down.
 

Flanders

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The ANC not delivering and stealing the money instead? It's almost as though there's a pattern here...
 

Pitbull

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Is that carport the car wash? R6.6mil? That's not even R 100k not even close, probably around R 40 - 60k :D
 

Lucas Buck

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In terms of operation process, the City of Tshwane advertised economic opportunities to the Mamelodi community and consulted with the councillors in various platforms. The successful cooperatives that have gone through the selection process will operate the following services within the car-wash precinct:

Braai and Kiosk facility;
Laundromat;
Hair Salon;
Car wash operation,
Cleaning Services,
Security Services and
Facilities Management
link

I don't think that the car wash on it's own cost R6.6. I think that the whole project including the other facilities are included in the R6.6, poor reporting if that's the case.
That car wash doesn't look anything like a state-of-the-art art car wash though, I wonder where the money went.
 
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Sneeky

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I don't think that the car wash on it's own cost R6.6. I think that the whole project including the other facilities are included in the R6.6, poor reporting if that's the case.
That car wash doesn't look anything like a state-of-the-art art car wash though, I wonder where the money went.

Perhaps, but somehow that still fails to put the necessary sprinkles or frills on that excuse for a car wash pictured above.
 

flippakitten

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For R6.6 mil you could have given those 50 people basic tertiary education in business management and entrepreneurship, and a starting budget.

If only 10 of the 50 succeeded, they might have been able to employ 10 - 50 people each in the next 10 years, thus creating 100 - 500 jobs. The other 40 would have a decent education and be able to find meaningful work.

Sad when the people you vote for think you're only good enough for cleaning services and not giving you the chance to explore your potential.
 

konfab

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But socialism works everyone, all they need is rich people's money
 

MrGray

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On paper, this all sounds like it could have been a great idea. But combine the utter lack of any management and oversight ability with the ANCs baked in propensity for sticky fingers and this kind of thing is doomed to fail.
 

konfab

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On paper, this all sounds like it could have been a great idea. But combine the utter lack of any management and oversight ability with the ANCs baked in propensity for sticky fingers and this kind of thing is doomed to fail.

That is where you are wrong.

Running a business isn't just a case of getting free money from the government and sitting in your chair. The reason private business works better is because if the thing goes belly up your livelihood is at stake. And since the ANC isn't using their money to do it, they couldn't care less if it fails or not.
 

MrGray

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That is where you are wrong.

Running a business isn't just a case of getting free money from the government and sitting in your chair. The reason private business works better is because if the thing goes belly up your livelihood is at stake. And since the ANC isn't using their money to do it, they couldn't care less if it fails or not.

I disagree somewhat. If done correctly, this kind of thing could work BUT only if they find entrepreneurs with good management skills to run it (with some kind of stake in the business) AND have strict processes to check that money is spent and accounted properly. But then again, it wouldn't be much different from a IDC loan anyway so I take your point it may as well be left in the hands of the private sector.
 
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