Sifikile loan to be recovered: Report

The economic development department is planning to recover a R5.5 million loan from former Umkhonto we Sizwe Military Veterans Association treasurer Dumisani Khoza, The Star reported on Friday. 

   

Five year's ago, the department's Gauteng Enterprise Propeller (GEP) granted Khoza the loan, but he had allegedly failed to repay.   

 

The loan was for Sifikile Card Technology -- a business owned by Khoza and one P Nyathi -- a BEE company in the information communications technology sector. The loan was supposed to be repaid by March next year, according to the newspaper. 

   

Repayment conditions for the loan included a 13 percent interest  rate within 72 months, a notarial bond for some of the business's moveable assets, and personal surety of the owners, if the company could not honour its repayments. 

   

Khoza denied that the company received the loan, saying the GEP had paid the money to a German manufacturer once Sifikile was shortlisted to produce credit card driving licenses. 

   

"We submitted a proposal to the GEP for assistance and they decided to go straight to Germany and secure the machines for us from Ruhlamat, the manufacturer," he was quoted as saying.

   

Economic development department spokeswoman Nondumiso Msomi said  Sifikile received the loan and plans to recover the funds were underway. 

   

-Sapa