The Office of the Premier in KwaZulu-Natal has been blasted for “toying” with the ambitions of young people and making “empty promises” after pledging business funding when it did not have the money.

Members of the Finance Portfolio Committee recently took the office to task after it emerged that the office had promised R100 million in business fund-ing support for young people in Youth Empowerment Funding at a time when it did not have the funds.

It held an event in June to announce the recipients of the funding. The office was heavily criticised for hosting this function, as it had no money to disburse.

In addition, the actual disbursement of the funds stalled after it emerged that there might have been irregularities in the selection of the beneficiaries, leading to a probe being launched into the matter.

It has emerged that at the time the announcement of the funding was made, the department did not have the money it had committed; approximately R75 million of this amount was with the Provincial Treasury awaiting rollover approval.

The Provincial Treasury department stated yesterday that the cabinet had approved the rollover, but it still needs to be tabled before the legislature, which will happen only early in December. The funding promises were made in June, but the cabinet only approved the rollover on Friday.

The revelations had outraged members of the Finance Portfolio Committee, who questioned why the department paraded young people in public as beneficiaries of business assistance funding when it knew they would not receive any money.

The acting CFO at the Premier’s office, Sthembiso Ntombela, told the committee that without the rollover, they would not have been able to honour the disbursement.

“R75 million is a lot of money, and we do not have sufficient savings currently to say we can disburse this R75 million on our own. However, with the little that we have, we would have to stagger the disbursement, which can overlap into the following years, but we are not in a position to do the disbursement with our own funds if the rollover isn’t approved.”

A committee member, Celiwe Madlopha, said it had been unconscionable for the Premier’s office to parade young people in public as beneficiaries when the office knew they would not receive the money. “We were all there celebrating that these young people had been awarded funding. If these young people have not been given the money, it will have a negative impact on the government of KwaZulu-Natal, as it will suggest that we make empty promises to young people. We cannot have a negative view in the community by making empty promises.”

“The department knew that the process for the rollover had been delayed, so why did they continue with the function when they knew there was no actual money to hand over to the beneficiaries? They were paraded there and given big cheques.

“This was seen by the whole of South Africa, and the country believes that these young people have been given money to start their businesses. There are young people out there who were promised funding and are now saying that the legislature has not paid the promised funding; they think it is the legislature that is responsible.”

The chairperson of the committee, Mthandeni Dlungwana, said it was uncalled for that the office hosted an event when the money was not available. “You knew very well that you do not have the money; you have gone and made commitments on the money that you do not have. We are dealing with young people who now have their hopes very high. Why did you continue?”

The officials could not respond to why they proceeded with the function and were asked to respond in writing.

Dr Sabelo Gwala, Deputy Director-General in the Premier’s office, said yesterday that the Premier is currently considering the investigation report, its remedial actions, and the disbursement plan by the department.

“Stringent governance and financial controls have been put in place to ensure transparency and accountability. Payments will be made in line with due diligence processes following the Premier’s approval. We remain committed to ensuring that deserving youth beneficiaries receive their funding in a lawful and transparent manner,” he said.

THE MERCURY

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