Entrepreneurs warned to repay government loans

27 August 2015 - 02:43 By Penwell Dlamini

Pay up - or else, the Gauteng MEC for economic development has warned entrepreneurs who owe money to the Gauteng Enterprise Propeller. MEC Lebogang Maile met entrepreneurs from the province yesterday to spell out his plans for solving the financial crisis at the agency, which is owed R100-million.The cash-strapped agency, established in 2005, has been unable to pay its service providers and has put a moratorium on new loans.Some entrepreneurs had been told in writing that their loan had been approved but were later told "there is no money".Others received only a portion of the agreed loan.The Gauteng Enterprise Propeller has R30-million left to run its operations and pay workers.Maile blamed the agency's weak contract management and credit control - and corruption."We have identified officials in the agency who have been implicated in corruption."We are investigating those officials and we will ask the forensic unit of the provincial treasury to investigate. We will deal with them decisively," said Maile.He said some of the people who had failed to repay loans had made deals with agency officials."There seem to be mafia or some form of cartel [within the agency] that sits and decides where the money goes."Gauteng Enterprise Propeller and the Gauteng Liquor Board are the only agencies in the department of economic development not to receive a clean audit report.Maile wants to get the agency functional to implement his township revitalisation strategy."We will appoint a company to collect [the money owed]. We cannot compromise."If we don't get that money, we can't fund more people."[Debtors] know their houses can't be attached. We want to change that. We should get to a point at which we are able to attach [the assets of] people who do not want to pay us back," he said...

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