The Constitutional Court ruled unconstitutional the Tourism Equity Fund of the Department of Tourism, which granted relief only to enterprises that were 51 percent black-owned.
This follows the department’s appeal against the Supreme Court of Appeal’s finding that the use of black economic empowerment (BEE) as a criterion for providing Tourism Equity Fund assistance was illegal.
Ramaphosa must outline measures to save the sugar industry by SONA 2023.
The then-Minister of Tourism, Mmamoloko Kubayi-Ngubane, established the Equity Fund in 2020 as an agency that would exclusively provide loans and grants to firms with at least 51% black ownership.
According to AfriForum and Solidarity, it is unreasonable to allocate relief monies based on race. They assert that the Constitutional Court confirmed the illegality of the department’s Tourism Equity fund.
Anton van der Bijl, Solidarity’s Deputy Chief Executive for Legal Matters, asserts, “The fund’s criteria were blatantly racist.”
“The government may attempt to cloak it as transformation, but it has long since revealed its true colors. This (Constitutional Court) decision sends an important message to the administration that race cannot be used as a trump card to trump other interests.”
Tourism Fund for the Anton van der Bijl Constitutional Court
The Constitutional Court has upheld the ruling of the Supreme Court against the Department of Tourism, plus costs. Image: Pixabay
Additionally, the Civil Aviation Authority will restrict airspace for Sona 2023.
Ernst van Zyl, AfriForum’s Campaign Officer for Strategy and Content, remarked, “This ruling is a major setback for the government in its fight to protect its ‘right’ to discriminate on the basis of race.”
According to AfriForum and Solidarity, this ruling against the Department of Tourism by the Constitutional Court is a significant victory. According to them, the government’s persistent preoccupation with race and representation is one of the most significant hurdles to a functioning economy.
Additionally, security will be tight outside Cape Town City Hall for SONA 2023.
Van van Bijl remarked, “Today’s judgment lays a solid foundation for future battles and litigation.”
»Constitutional Court rules the Tourism Equity Fund unconstitutional«