Struggling along in first gear

Nafcoc, the black business body that represents small and medium entrepreneurs, said it was time the Small Enterprise Development Agency (Seda) board showed its mettle and sorted out the mess or resigned.

Seda is beset by governance difficulties that have negatively affected service delivery to the small business sector.

“Seda has been in a shambles for far too long. It is about time the institution is put in order,” said Nafcoc president Buhle Mthethwa.

“Millions in taxpayers’ money is being wasted on this agency that has never really managed to come out of first gear,” she charged.

“If the board is not strong enough to provide decisive leadership they must do the honourable thing and resign.”

Mthethwa said she was equally concerned that Trade and Industry Minister Mandisi Mpahlwa had failed to act.

“As I speak to you I am not sure as to who is in charge at Seda. It’s an untenable situation that must be corrected urgently,” she said.

“The minister must tell South Africa what is happening there. The Seda track record is dismal. It has failed to render critical support services to small businesses.”

A forensic audit on Seda was conducted more than a year ago. It pointed to weaknesses in management and found instances of financial abuse.

Though this report was handed to the minister by the board with recommendations, he failed to act.

The report also pointed to blatant disregard of procurement procedures. In one instance, the auditors found that vehicles had been ordered for offices and staff that hadn’t been established or appointed.

The Seda board, chaired by Anna Mokgokong, claimed all they could do was recommend corrective action to the minister.

Mokgokong, who has owned up to the problems facing Seda, said she understood Mthethwa’s frustrations with Seda and the board in particular.

“Look, it’s either you are in charge or you are not. We have tried to provide leadership, but I guess our efforts are not enough,” she said.

The board is hindered by a cumbersome reporting structure that has the chief executive reporting directly to Mpahlwa.

Some members of the board reportedly want to leave Seda out of frustration.

Seda chief executive Wawa Damane refused to talk about her work situation.

Meanwhile Seda employees, or at least the 120 staff members represented by the National Union of Public Service and Allied Workers (Nupsaw), have called for an urgent commission of inquiry into Seda and its failure to provide support to small businesses.

The union wants government to set up an urgent commission of inquiry into the situation, which has cost taxpayers about R1 billion since it was founded four years ago.

Nupsaw this week condemned the agency’s failure to fulfil its mandate of maximising support for small enterprises.

The union said it wanted the alleged financial mismanagement investigated.

Nupsaw Gauteng organiser Maurice Makatu said the extended absenteeism of the chief executive and her executives needed to be explained as well as the failure of the executive to have the 2008/09 business plan and budget approved by government.

“Almost two months into the new financial year Seda employees are reporting to offices with no work to do, after a moratorium on spending was imposed until budget approval.

“This is the third year in a row where this has happened with dire consequences for small business support,” said Makatu.

He said the inquiry should probe the reasons for the lack of coherent programmes, products and services to support small businesses.

Clement Manoko, the acting head of communications at the trade and industry department, said they would respond to the demand for a commission of inquiry.

Ministry spokesperson Vukani Mde had not returned messages left for him at the time of going to press.

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