Finance and Economic Opportunities
(1) Whether his Department has exited the collaboration; if not, (a) why not and (b) what is the current status update of the project; if so, what are the relevant details;
(2) (a)(i) how many store owners are still in operation under this project versus those that terminated their participation and (ii) what are the reasons for the termination, (b) how much was the funding from his Department to each market store participating in the project from its inception to date, (c) what are the (i) names of the stores, (ii) amounts of funding and (iii) purposes of the funds and (d)(i) when and (ii) to whom were the funds disbursed?
[1] Whether his Department has exited the collaboration; if not, [a] why not
The collaboration between the Department and Pick n Pay on the Market Stores Project has concluded and no funds were transferred to the organisation during the 2021/2022 financial year, as Pick n Pay had placed the project on hold. However there is ongoing cooperation regarding existing Market Stores and the Department is in the process of conducting a public call for proposals with prospective retailers linked to the Township Retail Support programme.
[b] what is the current status update of the project; if so, what are the relevant details;
The Market Store Project was placed on hold by Pick n Pay during the 2021/2022 financial year since they are in the process of developing a new model that is more efficient. No new store openings are planned for 2022 in the Western Cape.
[2] [a][i] how many store owners are still in operation under this project versus those that terminated their participation and [ii] what are the reasons for the termination.
- Eight stores were opened since the commencement of the collaboration between the Department and Pick n Pay. Six of these stores continue to trade in partnership with Pick n Pay. Two stores had their agreements terminated [see table below].
- Table 1: Reason[s] for the termination of the two Market Stores
|
STORE |
AREA |
REASONS FOR TERMINATION |
|
Nozinga’s Market |
Gugulethu |
The performance of the store could not sustain the cash flow due to management challenges. The shortage of cash flow resulted in the store not being able to timeously settle invoices with Pick n Pay and other suppliers, which resulted in supply being stopped to the store. The owner went outside the Pick n Pay supply chain and could also not settle these invoices. A decision was made by the owner to close the store as it ran out of stock. |
|
Delft |
The agreement between Pick n Pay and the Luzukile Market store has been terminated. The following reasons for the termination of the agreement was cited by Pick n Pay:
Pick n Pay issued breach of contract letters after numerous calls, emails, messages, and virtual meetings with the store owners regarding the above-mentioned challenges which resulted in no improvements in the situation or adherences to the recommendations made by the Pick n Pay Market Store team.
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[2] [b] how much was the funding from his Department to each market store participating in the project from its inception to date, [c] what are the [i] names of the stores, [ii] amounts of funding and [iii] purposes of the funds and [d][i] when and [ii] to whom were the funds disbursed?
Table 2: Funding allocation to Market Stores
|
c.i] STORE NAME |
|
|
d. i] WHEN FUNDING WAS PAID |
ii] TO WHOM FUNDING WAS DISBURSED |
|
Nozinga’s Market |
R249 999,60 |
Air con, ventilation, and refrigeration. |
Jan 2018 |
Funding was disbursed to the National Empowerment Fund [NEF]. The NEF made payment of R249 990, 60 to Optimal Air CC. |
|
Ndwamba’s Market |
R362 957,83 |
|
|
Funding was disbursed to the National Empowerment Fund [NEF]. The NEF made payments of:
|
|
Something Nice Market |
R499 341,26 |
|
|
Funding was disbursed to Something Nice Market. Something Nice Market made payments of:
|
|
Mbekweni Market |
R500 000,00 |
Electricity upgrade |
Jul 2019 |
Funding was disbursed to Pick n Pay. Pick n Pay made payment in the amount of R500 000, 00 to Drakenstein Municipality towards an electricity upgrade. The electricity upgrade in total amounted to R646 519, 69.
|
|
Nabe Market |
R500 000,00 |
Building renovations |
Feb 2020 |
Funding was disbursed to Pick n Pay. Pick n Pay made payment in the amount of R500 000, 00 to Koolcon Turn-Key Solutions.
|
|
Thembi’s Market |
R500 000,00 |
Building renovations |
Feb 2020 |
Funding was disbursed to Pick n Pay. Pick n Pay made payment in the amount of R500 000, 00 to METERsq.
|
|
Luzukile Market |
R500 000,00 |
Building renovations |
Mar 2021 |
Funding was disbursed to Pick n Pay. Pick n Pay made payment in the amount of R500 000, 00 to Koolcon Turn-Key Solutions.
|
|
Wabo’s Market |
R500 000,00 |
Building renovations |
Mar 2021 |
Funding was disbursed to Pick n Pay. Pick n Pay made payment in the amount of R500 000, 00 to METERsq.
|
|
|
R3 612 298,69 |
|
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