Propeller still in a spin over old problems

06 May 2016 - 08:45 By PENWELL DLAMINI

Although the Gauteng Enterprise Propeller has been able to lift a moratorium on funding new businesses, problems relating to the attitude of staff and accessibility have again surfaced before the portfolio committee on economic development in the province. Yesterday the committee discussed the Gauteng department of economic development budget vote for the 2016-2017 financial year and raised concerns about the GEP.Committee member Sphiwe Mgcina lashed out at the agency's staff, claiming they were not accessible, even on departmental cellphones, when the public needed information and help.In August, the GEP was forced to put a moratorium on new funding applications after it failed to collect R100-million due to it from loans. The moratorium has since been lifted, but small businesses still complain about the treatment they get from the agency.Chairman Errol Magerman told The Times after the meeting that people were coming directly to the committee for help as they had become frustrated with the GEP.The committee was also not happy that most of the money the GEP had went to salaries and administration instead of towards funding businesses. The GEP spent R95-million on salaries, R21-million on operational costs and only R60-million on programmes to help small businesses in the province."We are not happy with that situation. We have raised the issue that there must be more partnerships with the private sector so that more money is spent on funding businesses than anything else. Our view is that GEP does not need so many employees," Magerman said...

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