Is the DG’s transfer to Red Tape unit the fallout from disobeying minister’s illegal request?

Issued by Henro Kruger MP – DA Shadow Deputy Minister of Small Business Development
10 Jul 2023 in News
  • The abrupt transfer by the Director General of the Department of Small Business Development, Mr Lindokuhle Mkhumane from the department raises serious red flags.
  • The move allegedly comes after the DG ignored an illegal instruction by the minister to allocate funds to support an ANC branch.
  • The DA calls on the Presidency to conduct an investigation into the allegations and transfer of  Mkhumane, and suspend the minister to ensure the integrity of the process.

Note to editors: Please find attached Afrikaans and English soundbite by Henro Kruger MP.

The DA calls on the Presidency to launch an immediate and thorough investigation into the transfer of the Director-General (DG) of the Department of Small Business Development (DSBD), Mr Lindokuhle Mkhumane, following alleged irregular funds requested from an ANC branch.

This comes after the Sunday Times reported that Mr Mkhumane was given illegal instructions by Minister Stella Ndabeni-Abrahams. He was allegedly instructed to allocate funds to support an ANC branch, an allegation that, if substantiated, raises significant concerns. It is not the role of the Department to serve as a funding conduit for political party activities. This is a gross misuse of public resources and a clear violation of the principles of good governance.

Until the outcome of this investigation is made public, Minister Ndabeni-Abrahams should be suspended to ensure the integrity of the process.

The abrupt move raises serious questions about the internal dynamics and strategic direction of the Department.

Moreover, the sudden move of Mr Mkhumane to the Red Tape Reduction Unit, a unit with no clear budget allocation or defined roles, raises additional concerns. This move, shrouded in ambiguity, appears to be a convenient way to remove a dissenting voice from the Department, further undermining the department’s credibility.

It is unacceptable that the Department, which is tasked with supporting the South African small business sector, is being manipulated for political gain. The DA will not stand by while the DSBD is transformed into a political piggy bank to fund the ANC’s election campaign and the party members’ affluent lifestyles.

The DA will continue to apply pressure on all relevant role players to ensure that the truth is revealed. We are committed to safeguarding the interests of South Africa’s small businesses, which form the backbone of our economy. We will not allow the Department to be used as a political pawn, and we will fight tirelessly to ensure transparency, accountability, and good governance within the department.

Be part of the mission to rescue South Africa, get help registering to vote at