Gauteng Enterprise Propeller writes off R38 million loan to small businesses

The Gauteng Enterprise Propeller (GEP) has written off R38 million, which it loaned to small businesses due to non-repayment challenges.

The businesses cannot be traced because they changed physical addresses, banking details and others seized to exist.

That’s the finding by the Economic Development portfolio committee in the Gauteng Legislature.

Last week, the committee met Gauteng Economic Development MEC Kgosientsho Ramokgopa and senior GEP officials to deal with outstanding issues emanating from its performance and budget report from January this year.

The committee also found that GEP attained only 50% of its performance targets and has a vacancy rate of 23%.

GEP is responsible for helping small businesses and co-operatives with funding. Committee chairperson, Lindi Lasindwa, says some of the R38 million debt goes as far back as 2015.

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