Small Business Portfolio Audit Outcomes; DSBD & SEDFA 2024/25 Annual Reports

Video 2024/25 Annual Reports The Portfolio Committee on Small Business Development convened to be briefed by the Auditor-General of South Africa (AGSA) on the 2024/25 annual performance of the Department of Small Business Development and its entities, and to consider its fourth quarter programme. The meeting did not have quorum, meaning that no resolutions or decisions could be made. However, based on the guidance from the Content Advisor, the Committee agreed to hear the AGSA presentation. The Department and the Small Enterprise Finance Agency (SEFA) had achieved a clean audit. However, both the Small Enterprise Development Agency (SEDA) and the Small Enterprise Development and Finance Agency (SEFDA) had received an unqualified audit outcome with findings. In terms of performance, the Department had achieved 88%, SEFA 67%, SEDA 60%, and SEDFA 72%. Concern was expressed regarding the merger of SEDA, SEFA and the Cooperative Banks Development Agency into SEDFA. This had been intended to simplify support processes for small businesses, but the result had been leadership instability, with vacancies in key positions, poor integration of financial and non-financial support systems, and underperformance and audit qualifications in its first year. Members called for consequence management and further investigations into the merger process. Members were also alarmed by the increases in irregular, fruitless and wasteful expenditure. They commented that the performance did not align with the budget expenditure, and were concerned that small businesses were not being assisted effectively and impactfully. They insisted that vacancies in senior management positions needed to be filled, as they created a lack of leadership. This was critical, as there were already concerns regarding weak political and administrative leadership. The Committee noted the need for strengthened oversight over the Department and entities.