Finance and Economic Opportunities
With regard to the Pick n Pay Store Market Project:
(1) Whether any due diligence was done before the inception of this project to determine the financial suitability of the stores and/or store owners; if not, why not; if so, (a) what are the relevant details, (b) what was the financial status of the stores and/or store owners and (c) can a copy of the report that proves due diligence was done be made available;
(2) (a) what is the debt of each of the store owners and (b) how was it accumulated from the inception of the project to date?
[1]
[a]
- The Market Store Programme is owned and implemented by Pick n Pay. A due diligence exercise was conducted by the Pick n Pay Market Store Project Team which entailed factors such as viability of the location and site. In addition to this, a background check was carried out on the owner / operator. The Pick n Pay Market Store Project Team together with the Market Store owner then drafted a business plan which was submitted to an array of funders which included Masisizane, the National Empowerment Fund (NEF), the Small Enterprise Finance Agency (Sefa), and the retail banks. A due diligence was carried out by each of the funders prior to them approving or declining the funding application.
- Once the funding application was approved, the Department received an approval letter (approving the Market Store site and the Market Store owner) from Pick n Pay.
- The Departmental grant funding was then allocated towards the approved Market Store(s) to assist the business owner in the refurbishment of the store and set up costs.
[b] The Department did not conduct financial due diligence or credit checks on the stores or owners. See 1(a).
[c] This information should be requested from Pick n Pay and the relevant credit providers.
[2]
[a] This information should be requested from Pick n Pay and the relevant credit providers.
[b] This information should be requested from Pick n Pay and the relevant credit providers.
