(Parliamentary debate: The need for measures to ensure that the R500 million earmarked for the Spaza Shop Support Fund is used effectively and not misappropriated)
Given the ANC’s proven history of corruption and mismanagement, the Freedom Front Plus (VF Plus) is seriously concerned about the potential looting of the R500 million Spaza Shop Support Fund.
The funds were appropriated by the Departments of Small Business Development and Trade, Industry and Competition to assist the spaza industry in complying with health regulations.
A recent example of the looting of public funds is during the Covid-19 pandemic in 2020 when President Cyril Ramaphosa promised that strict measures would be implemented to prevent corruption with the R500 billion Emergency Relief Fund.
However, the Special Investigating Unit (SIU) later uncovered widespread fraud, including R13,3 billion in corruption related to personal protective equipment and R2,5 billion relating to the TERS scheme.
Several high-ranking public officials and 51 companies were implicated in the abovementioned corruption. It clearly proved that not even the President’s promises can keep ANC cadres from looting public funds.
So, no one can blame the Freedom Front Plus for not trusting the ANC with a fund such as this.
The Fund will undoubtedly be looted: The only question is how much of taxpayers’ money will end up in the pockets of a few corrupt officials or politicians, instead of supporting spaza shops or communities.
The R500 million should rather be used to strengthen and expand municipal law enforcement, especially when it comes to policing these informal food outlets.
The money could also be put to better use by assisting local governments in appointing and training more health inspectors for the sector. A portion could even be allocated to supplying more medicine to public healthcare facilities.
Such measures will improve the regulation of the informal food sector and promote public health.
The Freedom Front Plus implores government to keep a close eye on the Fund. Every effort should be made to prevent this initiative from becoming yet another example of the ANC’s inability to manage public funds effectively.
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