Boutique probe welcomed: Sacci

The SA Chamber of Commerce and Industry (Sacci) on Wednesday welcomed a probe by the trade and industry department into the National Empowerment Fund's (NEF) financing of a high-end boutique.

   

It was critical to ensure that the funding was in line with the NEF's mandate, Sacci said in a statement.

   

"The fact that the funds are public necessitates transparency and accountability. The action by Minister Rob Davies is a welcome continuation of a push towards greater transparency and accountability," the chamber said.

   

In a statement on Tuesday night, Davies announced the call for a "detailed report" on the multi-million rand funding of the boutique, called Luminance, in Hyde Park, Johannesburg.

   

"The NEF approved a total R34.1 million 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.

   

Davies declined to comment about the deal before he received the report.

   

"Among the other things I want to hear about this particular transaction is whether the transaction has or has not been within the framework that we have been articulated for, on empowerment. 

 

It must support productive sector entrepreneurship and support local productive activity in our country," he said.

   

The report would determine whether there was a need to change the NEF's mandate of transactions.

   

"It is premature for me at this stage to say whether that is the case or not; we want the report in this regard," Davies 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.

   

The owners of the boutique, businesswoman Khanyi Dhlomo, her mother Venetia, and businesswoman Judy Dlamini, reportedly also used R15m of their own money.

   

Gauteng premier Nomvula Mokanyane has been quoted as saying she was in "heaven" after visiting the shop, which stocks designer labels.

   

"Shoes and bags are part of my therapy," Mokonyane reportedly said.

   

-Sapa