15 Apr 2021

The Assistant Minister of Local Government and Rural Development, Mr Kgotla Autlwetse says his ministry has observed that young people including those under care of his ministry are exposed to handling cash without prior training of guidance on financial matters.

In addition, Mr Autlwetse said there was no legislation or policy in place to facilitate the involvement of his ministry nor provision of any guidance on financial management.

Answering a question in Parliament on Wednesday, Mr Autlwetse said he was aware that upon turning 18 years, a person emerging out of minority would have his or her account credited with money, which had been held in the Guardian Fund managed by the Registrar of the High Court on his or her behalf.

He acknowledged that giving such funds to beneficiaries who have not been trained on financial management might expose them to other social ills, including being targeted by drug dealers.

“I agree that on account of the emerging challenges faced by children and young adults who have access to money, it has become necessary that training on financial literacy be provided,” said Mr Autlwetse.

Furthermore, he said, the ministry had started working on the development and review of Social Protection Policies including the Family Policy where  such matters would be addressed.

Mr Autlwetse was answering a question from specially elected Member of Parliament, Dr unity Dow, who had asked the minister if he was aware that upon turning 18 years, a person emerging out of minority would have his or her account credited with monies which had been held in the Guardian Fund managed by the Register of High Court on his or her behalf.

Dr Dow also asked whether he had observed a pattern emerging where children who had been under his care, under the Social and Community Development Programme or had been under the care of their relatives, came into contact with these monies without any training or guidance on financial management.

She also wanted to establish if the minister had observed a pattern emerging where some, not all, of these young people had become targets for drug dealers and whether he did not think it was necessary to establish a training programme to assist them to transit from childhood to adulthood with necessary skills to manage their newfound wealth.

Furthermore, Dr Dow asked the minister if he did not consider it reasonable to propose legislation and/or policy to promote the use of the funds for the education of the beneficiaries, as some simply use it to buy vehicles and drugs and end up being destitute and in some cases, drug addicts. ENDS