Court allows Tourism Dept to grant financial relief based on BEE criteria
Trade union Solidarity plans to appeal the ruling in the Constitutional Court.
The North Gauteng High Court yesterday concluded that employing Broad-Based Black Economic Empowerment (B-BBEE) codes as a criterion for financially assisting tourism entities, is not unlawful.
This, after Afriforum and Solidarity challenged a decision by the Minister of Tourism, Mmamoloko Kubayi-Ngubane, that a R200 million relief fund allocated to assist small to medium businesses in the tourism and hospitality sectors, will be administered in line with BEE and economic transformation objectives.
The civil rights organisations wanted the court to order that race should not play any part in allocating the relief funds. It was argued on behalf of the applicants that the Covid-19 pandemic does not discriminate against its victims based on race. Therefore, it argued, it would be unfair if government offered relief based on these grounds.
Judge Jody Kollapen found that there was “nothing racial or shameful” in the department’s inclusion of B-BBEE criteria. She concluded that the criterion does not amount to an unfair advantage for some, based on race.
The Tourism Minister was satisfied with the court’s decision. “This is a great victory for the people of South Africa and for economic inclusivity. Finally, this judgment will set the wheels in motion to allow those who applied and qualified, to now start receiving grants,” she said.
She added: “I am satisfied that the court has reaffirmed our position that even during this crisis, we cannot ignore the fault lines that exist in our society.”
Solidarity plans to approach the Constitutional Court, where the union will challenge race as part of the criteria in granting relief to companies.
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