Trade Minister Queries Boutique's Funding

LazyLion

LazyLion

King of de Jungle
Joined
Mar 17, 2005
Messages
107,572
Reaction score
10,209
Location
District 9
Trade and Industry Minister Rob Davies has called for a report into the R34.1 million funding of a boutique in Hyde Park, Johannesburg, by the National Empowerment Fund (NEF), Business Day reported on Wednesday.

Davies spoke about the matter after briefing Parliament's trade and industry committee on Tuesday, the newspaper reported.

He reportedly said he wanted to determine whether the funding of the high-end boutique, called Luminance, was in line with the NEF's mandate and whether there was a need to strengthen that mandate.

"We are looking to see whether this transaction is in overall conformity with the directions of the NEF and whether there is any need to make any changes to the mandate," he was quoted as saying.

"At this point... I cannot pronounce on the transaction as I have not received the report."

NEF CEO Philiswe Mthethwa was quoted as telling City Press on Sunday that the amount was a legitimate investment.

"This is the first major investment in a business owned by black women. They seek to transform a sector dominated by whites and foreign interests," Mthethwa reportedly said.


Source : Sapa /mr/aa/clh
Date : 31 Jul 2013 07:52
 
Boutique Probe Welcomed

The SA Chamber of Commerce and Industry (Sacci) on Wednesday welcomed a probe by the trade and industry department into the National Empowerment Fund's (NEF) financing of a high-end boutique.

It was critical to ensure that the funding was in line with the NEF's mandate, Sacci said in a statement.

"The fact that the funds are public necessitates transparency and accountability. The action by Minister Rob Davies is a welcome continuation of a push towards greater transparency and accountability," the chamber said.

In a statement on Tuesday night, Davies announced the call for a "detailed report" on the multi-million rand funding of the boutique, called Luminance, in Hyde Park, Johannesburg.

"The NEF approved a total R34.1 million in loan finance to NLV [Ndalo Luxury Ventures] for the construction of the Luminance store, procurement of stock from local and international suppliers, and the local manufacture of a clothing range for the Luminance brand," Davies said.

Davies declined to comment about the deal before he received the report.

"Among the other things I want to hear about this particular transaction is whether the transaction has or has not been within the framework that we have been articulated for, on empowerment. It must support productive sector entrepreneurship and support local productive activity in our country," he said.

The report would determine whether there was a need to change the NEF's mandate of transactions.

"It is premature for me at this stage to say whether that is the case or not; we want the report in this regard," Davies said.

NEF CEO Philiswe Mthethwa was quoted at the weekend as saying the store was a legitimate investment.

"This is the first major investment in a business owned by black women. They seek to transform a sector dominated by whites and foreign interests," Mthethwa said.

The owners of the boutique, businesswoman Khanyi Dhlomo, her mother Venetia, and businesswoman Judy Dlamini, reportedly also used R15m of their own money.

Gauteng premier Nomvula Mokanyane has been quoted as saying she was in "heaven" after visiting the shop, which stocks designer labels.

"Shoes and bags are part of my therapy," Mokonyane reportedly said.


Source : Sapa /cp/mr/hdw/clh/th
Date : 31 Jul 2013 12:35
 
I simply do not understand how this managed to get financing approval but proposals for sustainable water and energy projects with fantastic ROIs, community upliftment, CSR initiatives and scalable export options is not considered "appropriate to the DTI's sustainable model of investment".

Fsck you...
 
DJ... said:
I simply do not understand how this managed to get financing approval but proposals for sustainable water and energy projects with fantastic ROIs, community upliftment, CSR initiatives and scalable export options is not considered "appropriate to the DTI's sustainable model of investment".

Fsck you...
Click to expand...

Who can argue with reasoning like this.

Last week, the fund's CEO, Philisiwe Buthelezi-Mthethwa, praised Dhlomo for her entrepreneurial skills. She said it was "wonderful" that labels such as Oscar de la Renta would now be available in South Africa.
Click to expand...

http://www.timeslive.co.za/thetimes/2013/07/31/khanyi-s-loan-minister-wants-answers
 
DJ... said:
I simply do not understand how this managed to get financing approval but proposals for sustainable water and energy projects with fantastic ROIs, community upliftment, CSR initiatives and scalable export options is not considered "appropriate to the DTI's sustainable model of investment".

Fsck you...
Click to expand...
We will eventually find out how she is related to the cream in the top of the ANC cadres.
 
DA Wants Empowerment Fund Review

A ministerial review of the National Empowerment Fund's (NEF) investment history must be conducted, after it financed a luxury boutique, the DA said on Wednesday.

"Providing financing to wealthy individuals for luxury boutiques that cater for the super-rich is anything but broad-based and essentially amounts to 'empowering the empowered'," Democratic Alliance MP Wilmot James said in a statement.

He would ask Trade and Industry Minister Rob Davies to table details on the matter in Parliament once he received them from the NEF.

"I will further request that minister Davies institute a full ministerial review of the NEF's investment history, its code of good practice, and the framework for empowerment within which the NEF must make its investment decisions."

The NEF approved R34.1 million in financing to Ndalo Luxury Ventures (NLV) to establish the Luminance boutique, which sells luxury clothing and related goods, in Hyde Park, Johannesburg.

The boutique is run by model and media personality Khanyi Dhlomo, her mother Venetia, and businesswoman Judy Dlamini.

In a statement on Tuesday night, Davies said he had asked for a detailed report from the NEF on funding for NLV.

"The NEF approved a total R34.1 million in loan finance to NLV for the construction of the Luminance store, procurement of stock from local and international suppliers, and the local manufacture of a clothing range for the Luminance brand," Davies said.

He declined to comment about the deal before he received the report.

"Among the other things I want to hear... is whether the transaction has or has not been within the framework that we have been articulated for, on empowerment. It must support productive sector entrepreneurship and support local productive activity in our country," he said.

The report would determine whether there was a need to change the NEF's mandate of transactions.

"It is premature for me at this stage to say whether that is the case or not; we want the report in this regard," Davies said.

Earlier on Wednesday, the SA Chamber of Commerce and Industry (Sacci) also welcomed the move. It was critical to ensure the funding was in line with the NEF's mandate, Sacci said in a statement.

"The fact that the funds are public necessitates transparency and accountability. The action by minister Rob Davies is a welcome continuation of a push towards greater transparency and accountability," the chamber said.

NEF CEO Philiswe Mthethwa was quoted at the weekend as saying the store was a legitimate investment.

"This is the first major investment in a business owned by black women. They seek to transform a sector dominated by whites and foreign interests," Mthethwa said.

The owners of the boutique reportedly also used R15m of their own money.

Gauteng premier Nomvula Mokanyane has been quoted as saying she was in "heaven" after visiting the shop, which stocks designer labels.

"Shoes and bags are part of my therapy," Mokonyane reportedly said.


Source : Sapa /cp/mr/jk/th
Date : 31 Jul 2013 14:03
 
Seriously said:
We will eventually find out how she is related to the cream in the top of the ANC cadres.
Click to expand...
Ndalo Luxury Ventures, co-owned by magazine publisher Khanyi Dhlomo, her mother Venetia Dhlomo, and Judy Dlamini, wife of FirstRand CEO Sizwe Nxasana.

Not necessarily ANC connected but definitely some already massively empowered black elite getting themselves "re-empowered"

One wonders how many locally produced garments and accessories they have really in their store ? Proudly South African indeed :whistle:
 
They already had 15 bar of their own to invest?
Why doesn't this go to someone who needs it rather?
 
Sinbad said:
They already had 15 bar of their own to invest?
Why doesn't this go to someone who needs it rather?
Click to expand...

Exactly the point I was going to make. If they had R15m of their own money available then why are they getting grants?
Surely it should be going to people that have nothing and want to make something of themselves?
BEE(with as man B's and E's added as they want) was never meant to uplift the poor, it was always there are a "legitimate" method for enriching the select few.
 
Rocket-Boy said:
Exactly the point I was going to make. If they had R15m of their own money available then why are they getting grants?
Surely it should be going to people that have nothing and want to make something of themselves?
BEE(with as man B's and E's added as they want) was never meant to uplift the poor, it was always there are a "legitimate" method for enriching the select few.
Click to expand...
She must have a good "slice" using it the most effective way?
 
Yoh ... how many people are employed and "empowered" by this store??? 34 Mil ... I could increase my factory 10 fold!
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X