SCA finds Tourism’s BEE criteria for Covid fund ‘unconstitutional’

The R200 million fund was set up last year to mitigate the damage done by the Covid-19 pandemic, especially on small businesses in the tourism sector. 

This after Solidarity and AfriForum opposed the Department’s BEE criteria in court, arguing against the legality and rationality of the 51% black owner or managed qualification criteria for the fund.

The verdict together with a cost order was delivered against the Department on Tuesday in Bloemfontein.

Solidarity’s Anton van der Bijl says the ruling has vindicated the union and the lobby group. 

“We are delighted with the verdict. It is a victory for everyone in the tourism sector who has lost their revenue and businesses as a result of the government’s implementations of the Disaster Management Act, but also whom the government has rejected based on the colour of their skin. 

“Solidarity and AfriForum was persistent, saying that the virus does not choose its victims based on the colour of their skin and that the government has no right to choose whom they will help based on this criteria. We simply could not allow this gross exploitation of people in need by the government.”

The SCA found that the Tourism minister had misinterpreted the B-BBEE Act.

“It could also be that the Minister’s legal advisers are insignificant or that she knew exactly what she did and still chose to discriminate against people based on the colour of their skin, in contradiction to the relevant legislation,” Van der Bijl said.

“It is time for government officials to realise that they simply cannot just make and break as they please, and that the taxpayer’s money cannot be spent carelessly, or be used to finance the ANC’s ideology.

“Ministers and their respective departments are also subject to the laws of this country and will be held accountable if they do not comply,” he adds.

Listen to Van der Bijl below:

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