South Africa: Court throws out suit challenging the disbursements of Tourism Relief fund

Share
Tweet
Post
Send

Photo: Tourism Minister Mmamoloko Kubayi-Ngubane

Tourism Minister Mmamoloko Kubayi-Ngubane has won her battle to allocate her departmental Covid-19 Tourism Relief Fund to qualifying sector business according to the broad-based black economic empowerment (B-BBEE) Act.

The ruling was made in the North Gauteng High Court in Pretoria today following a court challenge by Solidarity and AfriForum.

The parties argued that the promulgation of the National Disaster Management Act by President Cyril Ramaphosa on March 23 due to the outbreak of Covid-19 did not allow Kubayi-Ngubane to distribute the R200 million Tourism Relief Fund administered by her office along racial lines.

Advocate Greta Engelbrecht SC, acting for AfriForum, and Corne Goosen, for Solidarity, were adamant the National Disaster Management Act was aimed at providing relief to everyone affected by Covid-19.

They argued that Ramaphosa, in announcing the various forms of aid due to Covid-19, made no selective assistance to those who were historically disadvantaged in the past.

The parties were reacting to Kubayi-Ngubane’s justification of the B-BBEE as the sole criterion to help those adversely affected by the outbreak.

She said it was part of the requirement of the B-BBEE Act, saying it has the dual purpose of furthering her department’s purpose of sustaining and transforming the tourism sector, as well as acting as a proxy for businesses that “are particularly vulnerable to the economic effects of Covid-19 as a result of discrimination”.

Delivering his judgment, Judge Jody Kollapen agreed with Kubayi-Ngubane’s submission.

“At the level of principle, it can hardly be contended that the minister acted outside of her powers in terms of the Act and if she was constrained to exercise her powers to deal with the destructive and other effects of the disaster, then indeed the imperatives of empowerment are inextricably linked to the effects of the disaster.

“It is a matter of logic and common sense that if the disaster has the effect of but for financial assistance, leading to the closure of black businesses, it would undermine and set back transformation,” Judge Kollapen said.

“I need say no more on the principle of the inclusion of empowerment and transformation criteria as part of the qualifying criteria for the Tourism Relief Fund.

“On this aspect, I conclude there is no merit in the submission that the Act read in context prohibits the minister from having regard to the code of good practice as she did,” Judge Kollapen said.

Source:By Baldwin Ndaba- iol.co.za

Share
Tweet
Post
Send

Related Posts

Sponsored

Follow Us

Follow Us on X

#VoyagesAfriq | It’s coming together!

Be part of the Africa Tourism Leadership Forum 2026 | 2–4 September | Polokwane, South Africa

From deal rooms to big ideas, this is where Africa’s tourism leaders meet to shape what’s next.

Secure your seat.
http://tourismleadershipforum.africa

#VoyagesAfriq | Six days. One stage. Endless rhythm

The One Nation Reggae Festival Volume 2 returns with electrifying performances, rich cultural expression and a vibrant celebration of unity through music.

Save the dates and get ready for #ONRF2026.

https://tourism.gov.sl/one-nation-festival/

#VoyagesAfriq | The future of Africa’s meetings, incentives, conferences and exhibitions industry starts here.

Learn from the best, connect with industry leaders and sharpen your competitive edge at the 9th Africa MICE Masterclass.

Register now.
http://www.africamiceacademy.com

#VoyagesAfriq | Tourism leaders. Investors. Creatives. Airlines. Hospitality brands.

Everybody’s linking up at #ATLF2026

If Africa tourism matters to your business, this is your room.

Register now!
https://www.tourismleadershipforum.africa

#GoLimpopo #AfricaTourismleadershipForum

Load More