NEF performance is above reproach and has co-operated with the PIC with integrity
The mandate of the National Empowerment Fund (NEF) is to grow black economic participation in South Africa by providing financial and non-financial support to black entrepreneurs, and by promoting a culture of savings and investment among black people. In discharging this mandate, the NEF has approved 988 transactions worth more than R9.8 billion across virtually all sectors of the economy since operational inception in 2005, and together these businesses have supported 99 445 jobs countrywide.
Contrary to the testimony of the former CEO of the Public Investment Corporation (PIC), Dr Dan Matjila, presented to the Mpati Commission of Inquiry Into Allegations of Wrong-doing at the PIC on 10 July 2019, the NEF’s operational performance is above reproach. Further, the NEF has conducted its application for funding from the PIC with integrity, accountability and transparency. For the record, the PIC has never funded the NEF.
History of NEF capitalisation
Section 18 of the National Empowerment Fund Act No. 105 of 1998 provides for the NEF to be funded by Government as follows: “The operating and capital expenses of the Trust will be financed by grants, loans, income generated by the Trust or money appropriated by Parliament for that purpose”.