Johannesburg - The SA Chamber of Commerce and Industry (Sacci) on Wednesday has welcomed a probe by the trade and industry department into the National Empowerment Fund's (NEF) financing of an ultra-stylish boutique co-owned by media mogul Khanyi Dhlomo.
Dlomo's fellow owners are her mother Venetia and businessperson Judy Dlamini, who is married to FirstRand CEO Sizwe Nxasana. Dlamini, reportedly also used R15m of their own money.
The Gauteng premier Nomvula Mokanyane has even been quoted as saying she was in "heaven" after visiting the shop in Hyde Park, which stocks nearly 80 designer labels including Givenchy, Stella McCartney, Oscar de la Renta and Alexander McQueen.
Sacci said in a statement that it was critical to ensure that the funding was in line with the NEF's mandate.
"The fact that the funds are public necessitates transparency and accountability."
Sacci came out in support of a call made by Minister of Trade and Industry Rob Davies.
He has asked for a "detailed report" on the multi-million rand funding of the boutique, called Luminance.
The report would determine whether there was a need to change the NEF's mandate of transactions.
"The action by Minister Davies is a welcome continuation of a push towards greater transparency and accountability," the chamber said.
Clothing workers also outraged
The Cosatu-affiliated Southern African Clothing & Textile Workers’ Union (Sactwu) is also outraged at the finance deal.
"We are of the view that this is completely inappropriate in a country where the main challenges are to tackle our triple crisis, of poverty, inequality and unemployment," said André Kriel, Sactwu's general secretary.
"We fail to understand how this action by the NEF tackles our triple crisis meaningfully and how it helps to promote local jobs in the clothing, textile and leather industry."
Sactwu is particularly disturbed that the NEF appears to have funded a business "which undermines local procurement of clothing, textiles and leather goods and hence promotes local job losses".
The NEF is an agency of the dti and its role is to support B-BBEE.
"We call for an immediate investigation of this matter, in particular since it promotes de-industrialisation, contrary to our national development agreed priorities as set out in the Industrial Action Plan," Kriel said.
"This is a national disgrace and requires immediate investigation. In this regard, we warmly welcome and fully support the Minister of Trade & Industry’s call for a full investigation into the matter."
Kriel said the NEF needs to help the poor, to promote local industry and to help fight unemployment in a meaningful manner, not to promote the interests of the rich.
DA upset too
On Wednesday, the DA said it would write to Davies asking that the report be tabled in parliament.
"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'," DA MP Wilmot James said.
Financing Luminance
"The NEF approved a total of R34.1m 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 in a statement.
He declined to comment about the deal before he received the report and wants to be sure the transaction has been within the framework for empowerment.
"It must support productive sector entrepreneurship and support local productive activity in our country," he 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.