ILLICIT TRADE A THREAT TO LEGITIMATE INDUSTRIES

“Economic growth cannot be achieved when industries like tobacco lose R8 billion per annum.”

THE public debate on whether the last nine years under Jacob Zuma were wasted is immaterial. It is unnecessary to engage in a debate that is based on evidence which is available to all.

While Business Leadership South Africa (BLSA) believes the decade was wasted, others hold a different view. What’s important is to examine facts.

The erosion of ethics, norms and standards under Zuma’s stewardship cannot be ignored. Therefore, based on facts, the nine years were wasted.

It was during this period when state-owned enterprises like Eskom, Prasa, SA Revenue Service and Denel were brought to record low levels.

However, this rot exceeds one’s imagination as revelations at the three simultaneous commissions of inquiry into impropriety and state capture divulge daily.

Global Financial Integrity reports that illicit financial flows (IFFs), or illicit trade, cost South Africa R40bn in the past year.

The country is regarded as one of the world’s biggest markets for illicit cigarette sales, losing R8bn a year.

It is clear that the new Sars administration has taken on the mammoth task of essentially rebuilding Sars from scratch – but this will not happen overnight.

To understand the depth of this challenge faced by Sars, one would have to consider the malignant corruption within certain quarters of the SAPS. It is because some divisions in the SAPS were in disarray that Sars became complacent. All this criminality results in a sabotaged economy. This, then, leads to lack of economic growth in the country.

All this criminality results in a sabotaged economy. This then leads to lack of economic growth in the country

Economic growth cannot be achieved when industries like tobacco lose billions per annum. Illicit trade robs the poor of money that can be used to improve their lives. However, the worst is for SARS to fail in tax revenue collection and SAPS to be absent where crimes are being committed.

The BLSA has been consistent in its call for the rooting out of corruption and eradication of state capture which are the cancers that are eating away at our society. They must be rooted out, crushed and punished where we find them in the public or private sector.

Corruption erodes the values and worth of the Constitution, threatens our sovereignty, and undermines inclusive growth and our economic development.

The BLSA is concerned that the perpetrators, whether public officials or private parties, almost always require business counterparts.

Either way, corruption by both private and public sector threatens the economy.

Therefore, among the broader business, are some of the facilitators of these activities. Business complicity in corruption, whether wittingly or unwittingly, betrays public trust and undermines democratic values.

BLSA’s track record in dealing with instances of corruption within its ranks is well recorded. It is such decisiveness as displayed by the BLSA in dealing with corruption which will position government at the centre of victory and economic emancipation.

Mohale is chief executive of Business Leadership South Africa.