The Constitutional court declared the tourism fund introduced by Mmamoloko Kubayi-Ngubane, the then Minister of Tourism, unlawful. Image: Gallo Images / Daily Sun / Lindile Mbontsi)
Constitutional Court declares the Tourism Equity Fund unlawful
Constitutional Court declares former Minister of Tourism Mmamoloko Kubayi-Ngubane’s Equity Fund unlawful
The Constitutional court declared the tourism fund introduced by Mmamoloko Kubayi-Ngubane, the then Minister of Tourism, unlawful. Image: Gallo Images / Daily Sun / Lindile Mbontsi)
The Constitutional Court declared the Department of Tourism’s “discriminatory” Tourism Equity Fund for granting relief only to businesses that were 51% black-owned unlawful.
CONSTITUTIONAL COURT FINDS AGAINST THE DEPARTMENT OF TOURISM
This comes after this department appealed against the 2021 Supreme Court of Appeal’s 2021 ruling in favour of AfriForum and Solidarity in terms of the use of black economic empowerment (BEE) as criteria for granting relief from the Tourism Equity Fund was unlawful.
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Mmamoloko Kubayi-Ngubane, the then Minister of Tourism, introduced the Equity Fund in 2020 as an institution that would only allocate loans and grants to businesses with at least 51% black ownership.
According to AfriForum and Solidarity, the allocation of relief funds based on race is unreasonable. They say the Constitutional Court confirmed the department’s Tourism Equity fund as unlawful.
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THE FUND CRITERIA WERE RACIST, SAYS SOLIDARITY
“The fund’s criteria were downright racist,” says Anton van der Bijl, Solidarity’s Deputy Chief Executive for Legal Matters.
“The government may try to disguise it as transformation, but it has shown its true colours long ago. This (Constitutional Court) judgment sends an important message to the government that race can no longer serve as a trump card that takes precedence over all other interests.”
Anton van der Bijl
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“This judgment is a hard blow for the government in its battle to protect its ‘right’ to discriminate based on race,” said Ernst van Zyl, AfriForum’s Campaign Officer for Strategy and Content.
According to AfriForum and Solidarity, this Constitutional Court judgment against the Department of Tourism is an important victory. They say the government’s ongoing obsession with race and representativity is one of the main obstacles to a thriving economy.
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“Today’s judgment lays a strong foundation for further battles and litigation,” Van der Bijl concluded.
