High Court halts 'racist' Tourism Equity Fund payments
The High Court in Pretoria has interdicted the Department of Tourism from processing payments to black-owned businesses from the Tourism Equity Fund (TEF).
This comes after the Department of Tourism set aside initial funding of R540 million to boost black-owned business as well as women and persons with disabilities.
The Small Enterprise Finance Agency (Sefa) matched it with a contribution of R120 million and R594 million from commercial banks.
Trade union Solidarity and lobby group AfriForum subsequently took government to court over what it believes to be a discriminatory fund.
Both accused government of racism in the criteria to be used when awarding funds to applicants hit hard by the Covid-19 pandemic.
"We welcome the fact that the Department of Tourism's racial fund has been interdicted," said Solidarity CEO, Dirk Herman.
"The government believes race trumps everything and is above the law. To use race as a criterion for the revival of a sector hit hard by Covid-19 is morally indefensible.
"Covid-19 does not discriminate against anyone on the basis of race and neither should the revival of the sector. This fund was is a new racial low for South Africa," Herman added.
Tourism spokesperson Hlengiwe Nhlabathi-Mokota says Minister Kubayi-Ngubane will abide by the judgment.
"Minister Mmamoloko Kubayi-Ngubane notes the outcome of the court which restrains the processing and making payments from the Tourism Equity Fund until the matter is finalised," said Nhlabathi-Mokota.
"At this stage the minister intends to abide by this court order and we will be speaking further on the matter once the process is finalised."
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