DTIC's transformation fund will jeopardise competitiveness of SA economy - DA
The Democratic Alliance (DA) said that the transformation fund announced by Trade, Industry and Competition Minister Parks Tau would jeopardise the competitiveness of the South African economy.
Democratic Alliance (DA) flag. Picture: X/@DA_Gauteng
CAPE TOWN - The Democratic Alliance (DA) said that the transformation fund announced by Trade, Industry and Competition Minister Parks Tau would jeopardise the competitiveness of the South African economy.
DA trade,industry and competition spokesperson, Toby Chance, condemned what he called Tau's "unilateral policy announcement" on the creation of the R100 billion fund to help black businesses.
Tau gave details of the plan in a written parliamentary reply to the DA, saying the fund would be financed through private sector contributions in alignment with broad-based black economic empowerment (BBBEE) and the Competition Act.
"The DA will not support this madness. The minister's plan to impose further obligations on the private sector through the BBBEE codes and force companies to contribute to this fund or face penalties is not only uncompetitive but also illegal. The government cannot create such a fund without first obtaining the explicit approval of Cabinet, especially when it effectively introduces a new tax on the private sector."