The City of Cape Town has given away R10 million to businesses in Atlantis, who are already established. The incentives should be used only for new business and existing businesses that have proven to have legitimate challenges. However, the manner in which these businesses got access to the funds was just on application and the money is really just used to boost their profits.
The City officials and political leadership are just naiumlve and finding ways in which to ensure that the DA gets election funding from these companies when the time comes. The incentives are a good thing where they are used properly and must be carefully applied as these funds are often abused.
These incentives should only be used to encourage new sectors and new companies to start up in depressed areas, not for just anyone. COSATU is calling for an investigation into how these incentives were allocated as it is an open door for electoral funding, that the DA has been receiving in large amounts from these companies.
The Public Service Commission and the Public Protector will be asked to look into this money laundering by the DA.
Source : Congress of South African Trade Unions