12/04/2017 05:55 BST | Updated 12/04/2017 09:01 BST

Struggling SOEs Pay Millions To Business Associations

Embattled state-owned enterprises are forking out millions in sponsorships and membership fees.

Karel Prinsloo/Bloomberg/Getty Images

Embattled state-owned entities have paid millions to business association and similar entities in sponsorships, Business Day reported on Monday.

In a written reply to Parliamentary questions, Public Enterprises Minister Lynne Browne said Transnet alone paid R4,6 million to the Black Management Forum (BMF), the Black Business Council (BBC), Business Unity SA (Busa) and the South African Chamber of Commerce and Industry (Sacci).

According to the report, Sacci, the BBC and BMF each get at least R1 million from state departments and SOEs for membership fees, events and sponsorship.

Payments to Sacci from Transnet for sponsorships were R1,9million over the last three years. The SOE also paid over R1 million in sponsorships to the BMF between 2014 and 2016, Business Day reported.

Transnet also paid R22,800 to Busa for a gala dinner in 2014.

DA spokesperson David Maynier reportedly said he would ask the Auditor-General to investigate the payments.

Denel paid R303,000 in membership fees to Sacci while Eskom paid R350 to the BBC membership fees.

"It boggles the mind that the cash-strapped state-owned enterprises would be allowed to use public funds to sponsor private institutions, especially when some of these institutions blatantly pursue a political agenda and bite the hand that feeds them," said Maynier.