Not a single new business application approved in 2016, Gigaba confirms

Source: BUSINESS DAY, 27/03/2017

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
lacklustre 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 2016.


"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