Question NW81 to the Minister of Trade and Industry

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16 February 2017 - NW81

Profile picture: Hill-Lewis, Mr GG

Hill-Lewis, Mr GG to ask the Minister of Trade and Industry

With reference to his reply to question 2688 on 5 December 2016, regarding the R200 000 virement for the Progressive Youth in Business (PYB) (a) which persons or organisations requested the virement, (b) what was the R100 000 of the virement remaining after the transfer to a certain company (name furnished) used for, (c) why did the adjustment budget refer to the PYB, which is directly affiliated to a certain political organisation (name furnished), (d) what was the specific involvement of the PYB in the application for and awarding of this grant, (e) what is his department’s policy for sponsorship and (f) why was this application not redirected to the appropriate development finance institutions, such as the National Empowerment Fund?

Reply:

a) There was no virement requested by any organization. In accordance with the PFMA, the dti shifted funds from goods and services to Household: Gifts & Sponsorship line item to cater for the sponsorship requests received.

b) The remainder of the funds has not been used.

c) Regoapele Capital Wealth Engineering submitted a proposal of funding in a form of a donation for the launch of a mobile ICT application at the dti and the request was considered in terms of the sponsorship policy and the premise of potential value and contribution towards the strategic objectives of the dti.

d) Regoapele Capital Wealth Engineering was introduced to the Special Economic Zones & Economic Transformation Division of the dti by Progressive Youth in Business (PYB), who although is indicated as such in the in the adjustment budget, did not receive funding for this project. Regoapele Capital Wealth Engineering was approved and paid R100 000

e) The Public Finance Management Act (PFMA) and the National Treasury Regulations (NTR) provide broad guidelines for managing contributions towards sponsorships and gifts. This policy aims to provide guidelines that dti staff may follow when making donations. The policy is based on the PFMA and aims to support and complement the dti's Fraud Prevention Plan, as well as its code of conduct for government officials. The aim of sponsorship must always be to advance the dti’s aims, as defined in the Estimates of National Expenditure (Vote 32), and the aims of its supportive programmes.

f) The company applied for the donation to cover the launch of the Mobile based Application initiative that will serve as a platform to connect youth led initiatives with government departments, DFIs, JSE listed companies amongst others in providing access to information, technical and expert advice as well as improved access to incentives.

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