Judgment has been reserved on the DA’s attempt to have race considerations removed from government decision-making on the recipients of state relief under lockdown regulations.

The DA has argued that the government needs to consider the financial status of companies applying for Covid-19 relief and not to use Broad-Based Black Economic Empowerment (B-BBEE) criteria to determine who gets funding.

It asked the Gauteng High Court (Pretoria) to declare it impermissible and unlawful for government to use B-BBEE status, race, gender, age or disability as criteria for funding during the pandemic.

The case was heard virtually by a full Bench, led by Gauteng Judge President Dunstan Mlambo, notes a News24 report.

The party argued that government's decision to use transformation criteria when determining who gets economic relief, is illegal. Arguing for the DA, Advocate Steven Budlender told the court there is no need for race to be used as a metric to determine who benefits from government funding.

‘We say the B-BBEE Act has no application here. There are neutral ways of assessing need that do not require the imposition of race, gender, or disability,’ he said.

Budlender argued government could look at the current financial status of those applying for relief.

‘If you were to design a system that says we are going to look at cash-flow over the year leading up to Covid-19 (lockdown) and the cash-flow in the month of lockdown or we are going to look at sales. That would be a way of objective criteria that avoids any need to overlay race or gender,’ he told the court.

In response, Small Business Development Minister Khumbudzo Ntshavheni said race, gender, age and disability are recognised indicators of past and present disadvantage, notes News24.

She noted it helps to identify the most vulnerable people in society.

‘There can never be a debate that government is, as a matter of law and policy, entitled and enjoined to prioritise these vulnerable sectors as beneficiaries of state sponsored relief efforts,’ she argued in papers.

‘To contend otherwise demonstrates a lack of appreciation of deep structural inequality within our society along the lines of, among others, race, gender, age and disability. This inequality has been sharply highlighted by the Covid-19 pandemic which disparately affects the poor and marginalised,’ the Minister said.

‘The previously disadvantaged groups are far less likely to have access to financial reserves, suitable credit and other social support networks,’ she pointed out.

Full News24 report