20 April 2018 - NW825
Cardo, Dr MJ to ask the Minister of Economic Development
Whether the National Empowerment Fund (a) has officially become a subsidiary of the Industrial Development Corporation (IDC) and (b) has withdrawn from the R500 million loan facility it secured from the IDC for the 2017-18 financial year; if not, in each case, why not; if so, what are the relevant details in each case?
(a) The NEF has not yet been incorporated as a subsidiary of the IDC. Technical work has been completed and includes an assessment of the regulatory and governance requirements to ensure that all applicable regulatory framework, including the PFMA, are complied with. Following completion of a review of legislative implications, the modalities of incorporation will then be considered by Cabinet.
(b) The R500 million has not been drawn as yet, as certain conditions precedent flowing from the review and approval are still to be met, namely National Treasury approval and formalization of processes by Cabinet.