Lebogang Maile, Gauteng Finance MEC, Asks Reserve Bank to Help Drip Avoid Liquidation

• The Drip Group, a company founded in the township of Ivory Park by Lekau Sehoana, faces the reality of being liquidated
• Gauteng's MEC for finance and economic development, Lebogang Maile, has asked the governor of the Reserve Bank to afford 'rehabilitative intervention'
• The MEC said, "It's important that the law should never be punitive but rather rehabilitative"
• A Johannesburg-based company has applied for liquidation of Drip Footwear for not paying it more than R20 million

JOHANNESBURG — The government, in the form of MEC Lebogang Maile, has stepped in to try and save a local entrepreneur and his black-owned company, The Drip Group (pty) Ltd. Maile has appealed to the Governor of the Reserve Bank to save the company from going under.

According to TimesLIVE, Maile said:

“We cannot stand by and allow The Drip Group (Pty) Ltd, a company established in the township of Ivory Park by a young black entrepreneur who faced significant challenges, to be liquidated."

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MEC's letter to the governor regarding taxes

In the letter to the governor, the MEC stated that he conveyed steadfast respect and dedication to the rule of law. Drip is presently encountering issues related to non-adherence to local tax regulations.

Maile wrote in his letter, as reported by The Citizen.

“This also includes respecting the investigative process that the SARB has initiated in its legal case with Drip, which is being investigated for violating the Exchange Control Regulations established under section 9 of the Currency and Exchanges Act, 1933 (Act No. 9 of 1933)."

What do entrepreneurs and business people have to say?

@jdmlotshwa Joseph Dumisane, a local entrepreneur, asked:

"MEC, my business is not doing well since covid. May I get some assistance?"

@Bell19924453 had this to say about Lekau and politicians:

"Didn't the Lekau's wife say he had politicians in his pocket? 🤣"

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@NdzaviDerrick has this business advice for Drip:

"Why not seek a bailout from IDC aimed at raising black industrialists? If business can prove profitable going forward, it can be funded unless it is running at a loss."

Drip Footwear allegedly on the verge of liquidation

Briefly News reported earlier this year that one of South Africa's expanding footwear brands, Drip Footwear, is reportedly at risk of liquidation.

This follows claims that WideOpen Platform, an advertising firm, has applied for the company's liquidation due to an unpaid R20 million invoice. Additionally, the company is allegedly planning to sue owner Lekau Sehoana for the outstanding debt.

Source: Briefly News