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By Olebogeng Motse

Journalist


Free State Development Corp throws 23 small businesses under the bus

The public entity has shut the door on nearly two dozen local businesses, allegedly without explanation.


The financial woes of the Free State Development Corporation (FDC) have led to several entrepreneurs being left stranded.

OFM News has been informed the public entity has shut the door on nearly two dozen local businesses, allegedly without explanation.

The businesses share office space as a part of the FDC’s flagship Rent a Desk programme.

The programme started in 2016 and offered full office services to upcoming businesses at a fixed monthly rate for a year. The fee is about R1 800 a month for a desk.

A 12-month contract between the tenants and the public entity entitles tenants to access to a boardroom, cleaning services, security, a receptionist, printing services and an official business address.

According to a tenant representative who wanted to remain anonymous, the FDC renewed all the contracts in October last year. It then backdated those contracts to May 2018.

In February, 23 of the 24 tenants were given 28 working days to vacate the building, contrary to the terms in the contract, which stipulates tenants will be given between 40 and 80 working days’ notice.

The FDC has released a statement signed by chief executive Ikhraam Osman responding to OFM News.

He says the facility was closing temporarily from April 2019 while it engaged “with the provincial department of public works to get a new building where emerging businesses can be accommodated. This will assist the FDC to operate the concept at a lower cost”.

The statement does not allude t0 alleged financial instability of the entity, nor is there an explanation as to why only 23 of the 24 offices will be vacated.

OFM News

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