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The DA is fighting the government using the B-BBEE status as a criterion for easing SME financing to the International Monetary Fund (IMF).
In a statement Thursday, interim DA leader John Steenhuisen said he had written a request to IMF Managing Director Kristalina Georgieva, opposing the South African government’s use of coronavirus disaster relief funds in a manner ” racially discriminatory. “
Last week, the party filed documents in the Superior Court of the Western Cape for urgent help to prevent, what it said was, an illegal use of the state, race, gender, age or disability of B-BBEE as a criterion regarding economic or other forms of relief or assistance.
“Since most of these aid funds come from a loan obtained from the IMF, I implore this international body to censure the South African government and order it to stop using IMF money in a way that discriminates against racial lines and exacerbates the racial tension in South Africa, “Steenhuisen said, adding that the ANC government’s support for B-BBEE compliant companies, at a time of national economic crisis, was outsized.
READ: DA to go to court for race-based covid-19 relief
In April, President Cyril Ramaphosa announced that the government would seek help from the IMF and the World Bank in its quest to raise R500 billion for a Covid-19 economic and social plan.
The money will go to municipalities for the provision of services, grants to alleviate the plight of the poorest, financing for job creation, tax relief for companies in difficulty, assistance for spaza shops and small businesses, and a scheme Loan Guarantee Scheme for Eligible Businesses.
The Treasury has projected that up to seven million South Africans may lose their jobs as a result of the national shutdown, in the worst case. This would catapult SA’s unemployment rate to over 50%.
ALSO READ: Mboweni Says State Must Support All Businesses If Viable Regardless of Race
On Tuesday, Finance Minister Tito Mboweni said South African companies, regardless of race, should receive state support, with a “bias towards emerging black entrepreneurs.”
“The career of a business owner is unrelated to the career of business employees. White-owned companies have black employees, who in turn support families. By deliberately denying these businesses critical government relief, He is not only the owner of the business, but in fact these families will suffer if the business fails.
“I have no doubt that the IMF did not intend to fuel racial discord in South Africa. I am confident that the IMF will not hesitate to tell the South African government not to use its loan financing in a way that encourages racial discrimination,” he said. Steenhuisen.
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