The North Gauteng High Court has reserved judgment in the case against the Department of Tourism, brought by trade union Solidarity and lobby group AfriForum, regarding the allocation of relief funds amid the coronavirus (Covid-19) pandemic.  

Both organisations have accused the department of using race as criteria for granting financial relief. 

On March 25 Solidarity filed a complaint with the Human Rights Commission after government had indicated that relief funds would be allocated on the basis of race.

An urgent application was served on the department on March 30, and on Tuesday the case was heard in the North Gauteng High Court along with a similar case brought by AfriForum.

Solidarity has argued that there is no room for black economic empowerment (BEE) in acquiring emergency relief funds. Government aims to use BEE to redress the inequalities of South Africa’s past in acquiring emergency relief funds.

Minister of Tourism Mmamoloko Kubayi-Ngubane has said that her department is obliged by law to grant relief funds only according to BEE requirements.

Solidarity CEO Dirk Hermann says, by regulation, micro-businesses are exempt from BEE under normal circumstances.

“BEE and the many administrative and financial obligations that come with it, now suddenly apply to these businesses and that amid the Covid-19 pandemic. The fund excludes large enterprises, most micro enterprises that are white-owned and small enterprises that are not registered for tax purposes, most of which are black-owned,” Hermann contends.

According to Solidarity 93% of owners, as well as thousands of small informal black businesses, will be excluded from any help from the fund.

AfriForum CEO Kallie Kriel believes both organisations made a strong case in court on Tuesday.

He said his party was prepared to fight the matter in the highest court.

“… it is unethical that government is all too happy to exact taxes from minorities and then to, without hesitation, discriminate against these same minorities when taxpayers’ money is being used. It is also shocking that the government, even in a time when everyone in the country is supposed to stand together against the mutual enemy – Covid-19, has decided to use the provision of relief to struggling enterprises to further its racial agenda,” he said.