20/03/2024
MEDIA STATEMENT / MEDIA RELEASE - 20/03/2024
LCCI TO INSTITUTE LEGAL ACTION AGAINST SEDA FOR RENEGING ON AN AGREEMENT TO ESTABLISH A MINING INCUBATION
In March 2023 the Limpopo Chamber of Commerce and Industry in South Africa (LCCI) was appointed by the Small Enterprise Development Agency (SEDA) to establish a mining incubation. The appointment was part of the 11 incubations SEDA sought to establish in 2023 in different sectors as per their tender advertisement of 2022, and the LCCI’s BID was successful for the mining sector.
Ever since the signing of the agreement in May 2023, SEDA has treated the LCCI unfairly and with hostility ranging from undue withholding of payments, intimidation, blackmail, and death threats. SEDA also sought to impose terms different to the other 10 incubations. The LCCI strived to resolve the matter peacefully since June 2023, and even raised and escalated the matter to the CEO Mr Nkosikhona Mbatha, to the board Chairperson Ms Xoliswa Daku and then to Minister Stella Ndabeni-Abrahams. None of them responded to our correspondences, not even a pretentious respect of the BATHO PELE principles were accorded to the LCCI. Instead, on the 9th of February 2024 they instructed their attorneys (Mncedisi Ndlovu & Sedumedi Attorneys Inc.) to issue a cease and desist against the LCCI.
The LCCI was therefore left with no choice but to take legal action as afforded in the agreement and the applicable laws. The LCCI has also reported the matter to the Public Protector, the Human Rights Commission, the Special Investigating Unit, the Parliament and to the President of RSA, considering the glaring and gross violations of various prescripts of law by SEDA in this regard.
While we allow the law to take its course, we will continue to offer the incubation services. We would like to assure our sponsors, associates, service providers, incubatees and the community of our commitment to the development of our people and eradication of joblessness, poverty, and inequality.
We are aware that the delay caused by SEDA has had financial implications to our sponsors, associates, service providers and incubatees, and we truly apologise for the inconvenience. Those affected will have an opportunity to recover their losses as part of our legal action, and are therefore encouraged to make their submissions to the LCCI.
A full media briefing will be arranged soon to provide necessary information regarding the disputes in the interest of transparency. We thank all for the continued support, should you wish to offer support to the LCCI or to join in our course of justice, don’t hesitate to contact us.
ISSUED BY Mr Albert Jeleni (President of the LCCI)