Deputy President Paul Mashatile has vowed to shield the newly proposed R100 billion Transformation Fund from corruption, pledging ironclad oversight and governance to ensure it drives real change — not political enrichment.
Speaking at a high-profile business breakfast in Pretoria, Mashatile outlined his vision for the fund, which aims to empower black-owned enterprises and catalyze inclusive economic growth through voluntary contributions from both public and private sectors over a five-year period.
“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.”
Yet, despite the strong rhetoric, skepticism lingers.
Critics fear a repeat of past failures linked to the B-BBEE framework, which has often been undermined by mismanagement, patronage, and political interference. Economist Stuart Theobald of Krutham and Piet Le Roux, CEO of Sakeliga, warned that unless fundamental safeguards are enforced, the fund risks becoming another conduit for elite enrichment.
“The risk of waste and patronage is real,” Theobald said. “We’ve seen well-intentioned policies become pipelines for enrichment rather than empowerment.”
The commitment also comes at a delicate time for Mashatile, who continues to face public scrutiny over allegations related to previous scandals, including the Alexandra Renewal Project and alleged questionable dealings involving close associates. Although he has denied any involvement in wrongdoing, the shadows of controversy persist.
Analysts say the Transformation Fund’s success hinges on more than political promises — it requires independent oversight, transparent processes, and legally binding accountability measures.
If done right, the fund could mark a turning point for black economic empowerment. If not, it could become yet another cautionary tale in South Africa’s struggle with systemic corruption.
