Dear Portfolio Committee on Small Business Development,

I trust this message finds you well.
I write with deep concern on behalf of distressed members of several co-operatives on the West Coast, Namakwaland, who continue to suffer under serious governance failures and fraudulent activities by certain directors. These directors are enriching themselves while depriving members of their rights as lawful owners of the co-operatives (rights protected under the Co-operatives Act). Members have been denied access to information, excluded from decision-making, and deprived of opportunities for work and education which is contrary to the principles and objectives of the Co-operatives Acts.
Engagement with Portfolio Committee member Mr. Kruger since May 2024, including commitments to conduct oversight visits and address these matters, has regrettably led to repeated delays and unfulfilled promises. Despite instructions from the Deputy Minister of DSBD for an urgent oversight visit and feedback to the Department, no such intervention has taken place.
Following continuous engagement with the Deputy Minister, a meeting was held on 21 May 2025 with the Deputy Minister and DSBD officials where it was agreed to establish a functional Co-operative Tribunal and, in the interim, to appoint a legal task team to assist co-operative members in distress. However, four months have now passed without any progress or follow-up, despite several attempts to secure another meeting. The only one scheduled was cancelled hours before it was due to begin.
Meanwhile, a second co-operative, representing over 100 members, has approached me for assistance with similar challenges, including unaccounted income exceeding R1 million and the inability to pay member wages or dividends. The absence of a functional Tribunal leaves these members with no practical remedy other than the High Court, an option they cannot afford.
We therefore urgently request that the Portfolio Committee:
1. Intervene and prioritise the establishment of the Co-operative Tribunal, or an interim mechanism to address members’ grievances;
2. Conduct an oversight visit to the affected co-operatives in Namakwaland to engage directly with members and assess the situation; and
3. Ensure accountability and progress on the commitments made by the DSBD and its leadership to continue with follow-up meetings.
These communities rely on co-operatives for employment and poverty alleviation. Their continued suffering due to inaction and the absence of a statutory Tribunal is a direct infringement of their constitutional rights.
I thank you for your attention to this urgent matter and remain available to assist in coordinating with both co-operatives to facilitate the Committee’s visit. I further express my full support to engage and communicate directly with the Portfolio Committee regarding the specific problems faced by these co-operatives and to provide any supporting documents, reports, and evidence necessary to assist the Committee in addressing the matter effectively.
Kind regards,
Eben Oosthuizen
Chairperson
Professional Co-operative Advisor
Member Representative and Co-operative Advocate