GAD recommends repossession

Onalenna Kelebeile | Tuesday October 4, 2016 15:39

The department has observed that some of the challenges the projects that were initiated by the groups faced are financial mismanagement, group dynamics, inability to penetrate markets as well as non-submission of quarterly reports.

Some of the targetted groups include Simple Holdings that produces household detergents.  The Urban Development Committee reported in the last full council meeting of the Selebi-Phikwe Town Council that Simple Holdings that was funded at approximately P182,000 in 2012 and has not been operating for three previous quarters, presented its last report during the 2013-2014 financial year.

Another group, Mopkims Farmers that ventured into production of cooking oil was funded to the tune of P220,185 in 2010.  The council heard that the business started its operations in the first quarter, but is already operating at a loss. 

It was explained that the sunflower that was purchased for cooking oil production is of poor quality and therefore not suitable for human consumption. Members of the group have since resorted to selling sunflower cakes for livestock consumption.

The committee report stated that the group members gave a verbal report last March with regard to the sale of raw sunflower in order to recover the costs they incurred, but have not submitted any report.

The group has proposed to sell their shares to two interested parties but the move may be illegal since the company is still under government ownership. “Repossession of the equipment is therefore recommended,” read the report.

Unique Perfect Recipe that produces jam and archar received approximately P138,000 but is not operating due to financial mismanagement and poor group dynamics.

They last reported during the 2013-2014 financial year and efforts to resuscitate the project have failed and its equipment will be repossessed.  Peanasco that ventured into peanut butter production was funded at approximately P250,000, but the project is partially operating as the group continues to produce and sell hand-made peanut butter. 

They are still faced with an operational space challenge. They have been urged to report their progress to the Gender Affairs office since the last financial year, but only reported during the first quarter of 2016-2017 financial year. Rekakgona group was funded with P250,000 to start fodder production and started operations in 2015.

 “GAD is still waiting for progress and financial report from the group for the previous year.  It is evident that the group is not performing well as they failed to harvest crops that they planted during the last ploughing season,” the report stated.

It is also understood that Rekakgona group has failed to submit any official report to the office in 2015-2016, but instead requested to join the new economic empowerment programme after they declared that their project has failed.

“Repossession of the equipment is recommended to recover government funds,” read the report.

Interventions that were made were that group members have been advised to work professionally with one another; report to the office quarterly and to consider to recoup equipment from redundant projects.

Only one group - Elegant Designs - that specialises in production of bags was funded to the tune of P160,000 has survived the challenges, is making profit and is able to pay monthly salaries of its employees.

“They even have savings accounts at two different banks.  This is an initiative that shows prudent financial management.  Their financial reports are up to date,” the Gender Affairs report stated.