DA lobbies IMF to oppose criteria used for businesses to receive relief funding

DA lobbies IMF to oppose criteria used for businesses to receive relief funding

The Democratic Alliance (DA) is lobbying the International Monetary Fund in a bid to stop government from using broad-based BEE as a criteria to distribute coronavirus relief funds to businesses.

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Government officials say SMMEs that are BBBEE complaint will be prioritised when allocating this funding.


Finance Minister Tito Mboweni recently said a large portion of the relief funds would be raised through international loans.

READ: SA eligible for a $4.2 bn COVID-19 relief loan at IMF - Mboweni

At the time, he said government was still discussing conditions with institutions including the World Bank and the IMF.

DA Interim leader, John Steenhuisen says people of all races are affected by the COVID-19 outbreak - and therefore relief from its devastation should not be determined on the basis of race.

"The race of a business owner has no bearing on the race of the employees of the business. White-owned businesses have black employees, who in turn support families. By deliberately denying these businesses critical government relief, it is not just the owner of the business, but indeed these families who will suffer should the business fail."

"I have no doubt that the IMF had no intention of fuelling racial discord in South Africa. I trust that the IMF will not hesitate in directing the South African government to not use its loan financing in a way that furthers racial discrimination."

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