Not a single new business application approved in 2016, Gigaba confirms 27. Mar. 2017 BUSINESS DAY
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Many applicants submitted fraudulent accountant letters purporting to confirm the availability of funds for business, Home Affairs Minister Malusi Gigaba says
The Department of Home Affairs rejected 148 applications for business visa renewals and 48 new business visa applications, without approving a single new business application between January and December of 2016.
This emerged in a written reply from Home Affairs Minister Malusi Gigaba to parliamentary questions. The figures are sure to raise eyebrows as SA continues to grapple with high unemployment and a lackluster industrialization drive.
Gigaba has taken what many migration researchers consider to be an inward looking, protectionist stance on migration since he was deployed to the Department of Home Affairs in 2014.
Gigaba also has contentious views on matters including the proportion of foreign employees that are allowed to be employed by businesses in SA, stating that 60% local staff should be a minimum requirement policy for businesses operating in SA.
In a written reply to questions by DA MP Toby Chance, Gigaba said that no new applications for startups were approved within SA in the period January 2016 to December
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"Twenty-five applications for existing businesses were approved and seven were approved for change of condition on an already issued business visa … 148 applications were rejected for business visa renewals, and 48 were rejected for new businesses," said Gigaba.
Gigaba said the department approved 25 applications for already existing businesses with seven being approved for change of condition on a business visa that had already been issued.
Gigaba said most applications were rejected because of fraudulent supporting documents, with many applicants submitting fraudulent chartered accountant letters purporting to confirm the availability of funds for business.
"The rejections therefore do not translate to any loss of potential investments as, in essence, the applicants could not provide proof of the available investment amount," he said.
The minister said the department traced the permits of all rejected applicants for deportation by the inspectorate unit. The inspectorate unit conducts inspections to confirm that anyone issued with a visa complies with the conditions of their permit, he said. V.1904 |
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