Businesses question trading licences
Small businesses and informal traders have allegedly been misguided into paying for business licences, instead of being assisted with free Companies and Intellectual Property Commission (CIPC) permits, when requesting to continue operating during lockdown.
MALALANE -According to the South African Business Federation (previously the Nkomazi Small Business and Informal Traders), around R2 million has been collected by the Nkomazi Local Municipality (NLM) for these licences.
“Varying amounts were paid for the licences from over 650 businesses in Nkomazi,” said Zinembe Sibiya, one of the executive directors of the federation.
“No receipts were issued for these licences and we have had multiple complaints from small businesses that those that were issued are not recognised by law enforcement.”
According to Cyril Rapinga, spokesperson for NLM, the whole situation is a big misunderstanding.
“It is prudent to differentiate between the business licences and a permit to operate for the duration of lockdown.
The business licence is issued according to the Mpumalanga Business.
These licences are valid for the duration of the year and the tariffs are determined by a municipal council, according to the municipal tariffs.
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“These business licences are issued from July 1 to June 30 each financial year. The tariffs differ from one business sector to the other.”
Sibiya and his colleague, Zakhele Madlopha, provided copies of the documents that show certain businesses being issued licences to operate, even though they were not essential during that part of lockdown.
The South African Business Federation sent queries to NLM’s executive mayor, the MEC of Cogta, as well as the premier of Mpumalanga, questioning the practice by the municipality, but have yet to receive a reply.
A press release was also issued to local media houses. It states that “Our concern at large is that the process appears as a corrupt revenue generation by the municipality while using the pandemic and placing most businesses into prejudice.”
In the query to the associated parties, the document states, “It should be clear that most of the traders never applied for business licences and were under the belief and that they were required by the Covid-19 coronavirus regulations to purchase the permit.
The municipality intentionally misled the traders into believing that they were issuing Covid-19 permits while they unlawfully generated revenue by way of misrepresentation to the traders.”
Ripinga concluded by saying, “It must be emphasised that not a single person paid for a permit to operate during the lockdown period, as these are free of charge.
“Our communities must differentiate between a business licence and the lockdown permit. Business permits during the lockdown period are free of charge and are issued according to the Disaster Management Act.”
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