15 Dec 2020

Assistant Minister of Investment, Trade and Industry, Mr Molebatsi Molebatsi has informed Parliament that the ministry of trade is responsible for facilitating businesses across all spectrums.

He said those included starting a business from conceptualisation of idea, mentoring and training and offering advisory services, quality assurance, offering concessionary loans and offering advisory services, quality assurance, concessionary loans and availing operational space.

He said companies were compelled by law to register a company and apply for a licence before they start a business.

He further stated that companies had a choice to enter into contract with the ministry leasing warehouses or applying for financing in case of citizen owned companies. 

Furthermore, he said companies were at liberty to approach the ministry for different services and that the arrangement was usually non-binding.

Mr Molebatsi said once companies had set up their businesses, it remained the investor’s sole responsibility to run the business based on its strategy and make decisions.

He said the investor was not obliged to communicate their business decisions to the ministry including closing down the business except where the company has entered into contract in terms of renting operational space that belonged to the ministry’s parastatals, or has been financed through a parastatal. 

Therefore, he said no legislation compelled the business to inform the ministry of their business decisions.

He was responding to questions asked by Selebi Phikwe East MP, Mr Kgoberego Nkawana, who had asked the ministry to state what happened to the factory shells machinery and other materials used by the some textile companies when they collapsed.

He had also asked whether employees of Sportsline, Bag Pakker, Rising Star, Garnet, Microlith and Guntron were able to receive their terminal benefits as prescribed by the law. 

Mr Nkawana had also asked how many employees had sought relief from the courts and what were the outcomes of court proceedings.  ends