I have been furnished with the information that follows, by the management of the Industrial Development Corporation (IDC):
The SMME Crisis Partnership Fund is managed by an independent Fund Manager, that being the SASME Fund.
As an investor in the fund, the Industrial Development Corporation (IDC) participates in a governance framework that has been put in place to protect the fund against corruption and wasteful expenditure. This consists of:
• Advisory Board
• Investment Committee
• IDC Oversight
• Reporting and Audit
Advisory Board
The Advisory Board is comprised of members appointed by the Investors. These members are independent in that they are not employees of the Fund Manager. The Advisory Board ensures that the Fund’s Guidelines, Policies and Procedures are adhered to. The Fund Manager may raise reasonable objections to the appointment of a prospective candidate e.g., reputational, or legal (criminal/fraud). The rights and responsibilities of the Advisory Board are to:
Investment Committee
The Investment Committees key role is to:
The committee is established and hosted by the Fund Manager. The Investment Committee members are individuals independent from the Fund Manager who possess the requisite industry, technical and financial skills to make investment decisions in accordance with the investment mandate and terms of the Fund.
IDC Oversight
IDC ensure appropriate oversight of the fund through representation on the Advisory Board and the Investment Committee. IDC has appointed senior staff who possess the requisite experience in respect of deal assessment, development finance and township sector knowledge to sit on these committees.
In addition, the IDC has a senior person responsible for constant oversight of the Fund and the Fund Manager.
Payments to the fund by the IDC are made as the fund invests in the SMMEs and not in a single lump sum. To effect disbursement of monies to the Fund, the Fund Manager must provide to the IDC the minutes of the Fund’s IC meetings showing which applicants have been approved for investment and the value of the investment.
Reporting and Audit
The fund manager is required to:
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