Trade and Industry Minister Rob Davies said in Parliament on Wednesday that he would not apologise for providing funding to the Black Business Council (BBC).

Davies was responding to a question asked by Dean MacPherson from the Democratic Alliance (DA) who wanted to know what processes his department followed when awarding R7-million to the organisation over a three-year period.

The minister said according to the Public Finance Management Act (PFMA), National Treasury approved the Department of Trade and Industry’s (DTI) transfer to the BBC to support its business development activities.

The DTI has in the past supported Business Unity South Africa (Busa), but when it split in 2011, a decision was made to provide funding to black businesses, which now resort under the BBC, Davies said.

He added that the BBC, which has received R5-million in the 2014/15 financial year and R1-million in the two subsequent financial years, did extensive preparatory work for the Black Industrialists Programme.

'Attacks on Treasury'

Macpherson in a follow-up question asked Davies if he’d agree that it is “unethical” to support an organisation that has attacked National Treasury and serves as a “front” for the Gupta family.

Davies maintained that he is satisfied the small amount of money transferred to the BBC “coincided” with the mandate of the DTI.

He said the BBC had provided audited financial statements, reports and a business plan before the money was transferred to the organisation.

Fin24 earlier reported that the BBC has been very critical of National Treasury and also opposed the Financial Centre Intelligence (FIC) Bill, which has since been signed into law.

One of its former members Jimmy Manyi is also said to have strong ties with the Gupta family.

In February, sources who chose to stay anonymous told City Press that former finance minister Pravin Gordhan had accused the BBC of trying to “capture” National Treasury.

Gordhan made the utterance at a National Economic Development and Labour Council (Nedlac) meeting shortly after his Budget Speech.