Mashatile vows to safeguard R100bn transformation fund from corruption
Deputy President Paul Mashatile has committed to safeguarding the proposed R100 billion Transformation Fund from corruption, pledging strong governance and accountability to ensure the initiative delivers on its promise of inclusive economic growth.
Speaking at a business breakfast in Pretoria on Monday, May 5, Mashatile stressed that the fund aimed at empowering black-owned enterprises must not become a vehicle for political cronyism. The fund seeks to mobilize R100 billion over five years through voluntary contributions from both public and private sector players.
“This fund must be managed transparently and independently,” Mashatile told attendees. “We will establish robust mechanisms to prevent abuse and guarantee that it fulfills its transformative purpose.”
However, the proposal has been met with cautious skepticism. Critics, including economist Stuart Theobald of Krutham and Sakeliga CEO Piet Le Roux, warn the fund could mirror past failures under the Broad-Based Black Economic Empowerment (B-BBEE) model. They cite South Africa’s estimated R1.5 trillion in losses to corruption and regulatory inefficiencies over the last five years as cause for concern.
“The risk of waste and patronage is real,” said Theobald. “We’ve seen well-intentioned policies become pipelines for enrichment rather than empowerment.”
Mashatile’s assurances arrive against a backdrop of lingering allegations tied to previous corruption scandals including the Alexandra Renewal Project and reported questionable financial dealings involving close associates. Though he has denied any wrongdoing, these controversies have cast a shadow over his credibility.
Observers argue that without independent oversight and enforceable anti-corruption safeguards, the fund’s success could be compromised before it begins.