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NAFCOC in the Free State Province has rejected claims that it has squandered R2 million meant to establish a distribution centre in Botshabelo east of Bloemfontein for local spaza shops.
Members of NAFCOC who spoke to The Business Weekly on condition of anonymity alleged that, the Provincial Chairperson of the Non-Profit Organisation Mr Tshepo Matshaba has embezzled the R2 million funding from the former Department of Economic, Small Business Development, Tourism and Environmental Affairs (DESTEA) meant to start a distribution centre for tuck-shops in townships.
The members alleged that, to date, there is not a single distribution centre but NAFCOC received R2 million from the department, they allege that he squandered the money for his own personal use.
The Business Weekly approached Matshaba for comment, of which he was more than willing to account, he refuted the claims saying the distribution centres have been established in different regions in the Free State, and is more than happy to give evidence to that effect, also, it is Shooting Star that received the funding and not NAFCOC.
The Chairperson further pointed out that the distribution centre in Botshabelo benefited a number of NAFCOC members participating at various levels of the value chain within the retail sector.
Tshepo Matshaba explained that during COVID-19, NAFCOC in the Free State initiated an intensive program for township businesses to be regulated and through different actions which included Shutdowns in Mangaung, he said the Provincial Government came down to them to find a solution.
Among the solutions they came up with was the LOCAL ECONOMIC DEVELOPMENT AND TRANSFORMATION BILL (which was enacted as an ACT last year); he said Distribution Centres across the province etc. The whole process led to the Department of DESTEA starting a consultation process on the Bill and issuing out a Tender for a Distribution Centres for each region.
“Some NAFCOC members in the retail space created a company called SHOOTING STAR DISTRIBUTION CENTRE and submitted a bid for R 5 million. Shooting Star won the bid for Mangaung Region and two more companies were awarded in Sasol and some traders in Heilbron.
Shooting Star was given R1 million and promised that R 4m will be paid in the next financial year (which never came). Around February to March 2021, NAFCOC backed Shooting Star to start its operations in Botshabelo, Mangaung Free State,” said Matshaba.
“Shooting Star started supplying black owned tuck-shops and supermarkets with stock and giving credit to a lot of small and informal traders. At the opening of the Centre Shooting Star had more than 10 people at their employ and created a number of temporary jobs during the renovation phase which benefitted NAFCOC members in the construction sector.
NAFCOC members in the transport sector would benefit from delivering to Spaza shops, deliveries would be made to far flung areas as far as Bethulie which is about 300km from the ”distribution Centre. Through the Distribution, a model was created to fill the value chain for locally produced products like agriculture, manufacturing and Poultry products to have access to shelf space and sell their goods,” he continued.
Tshepo Matshaba summarised the matter as follows:
1. NAFCOC never received any money for Distribution Centre but it was given to Shooting Star which participated in a fair bidding process.
2. Shooting Star received R 1million not R2million
3. Shooting had bided for R5 million but received R1 million which is a drop in the ocean for such a project, an ideal situation would be a minimum of R40 million to run a proper business.
4. Many Tuck-shops owners who took stock from the centre still have not paid back for the stock they received. Never the less many benefitted.
The Department of Economic Development and Tourism is yet to respond to our inquiry.
