By Simon Nare
Parliament’s portfolio committee on small business development has sharply criticised the Department of Tourism for the slow pace in distributing the Tourism Equity Fund and approving loans intended to empower black entrepreneurs.
MPs also took issue with the response from Director-General Nkhumeleni Victor Vele, accusing him of failing to adequately account for delays. Some members likened his replies to “blue-ticking”, suggesting a lack of meaningful engagement.
Economic Freedom Fighters (EFF) MP Babalwa Mathulelwa said Vele’s response focused too narrowly on existing funds without addressing long-term sustainability.
“I am of the view that the tourism DG is just blue-ticking us because the response is not enough. He is only talking about the money that is in the account. As a portfolio committee, we are fighting to ensure that the equity fund is not taken away from the department,” she said.
Mathulelwa criticised the brevity of the department’s response, arguing it failed to address the future of the fund.
“To give us a two-minute response to say we have money in the account and we are going to utilise it is not enough. What about the future? With the level of input we have made as a committee, this response falls short,” she said.
ANC MP Balungile Sapo echoed the concerns, saying the department had not been transparent about the reasons behind the slow approval process.
“The DG did not take us into confidence. He did not explain why there is a slow pace of approvals, and there seems to be a problem at the screening stage,” Sapo said.
She called for clear interventions to streamline processes and make it easier for new entrants in the tourism sector to access financial support without compromising due diligence.
In his defence, Vele said the fund comprises contributions from both government and private financial institutions, and that he could not speak on portions managed outside his authority.
“I do not want to make commitments on matters for which I do not have authority. I fully understand the concerns raised by honourable members, but I do not have the powers to make broader pronouncements on this issue,” he said.
He confirmed that funds currently held by the department would be committed in line with policy guidelines, while decisions on loan approvals fall under another entity responsible for credit assessments.
“We provide grants to applicants who meet the necessary requirements, but loan approvals are determined through a separate process,” Vele said.
He added that the department would ensure that funds already committed are disbursed appropriately.
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