NEF''s Philisiwe Mthethwa asks for more money, Fm.co.za – Financial Mail
While the National Empowerment Fund's Philisiwe Mthethwa is busy putting out fires caused by its funding of a luxurious clothing boutique, she is also asking the taxpayer to recapitalise the agency with billions so it can continue to empower black entrepreneurs.
The agency insists it is not seeking a bailout, as it is not in financial trouble, but that it has depleted its initial capital. The NEF, created with R2,4bn seed capital in 2004 to facilitate the funding of black-owned businesses, ran out of money and stopped approving new funding applications in May. “That amount was supposed to be deployed over the five-year period to 2010, but we stretched it to financial 2013,” says NEF spokesman Moemise Motsepe.