Why state capture will linger
DEAR Ajay, The current tumultuous situation in South Africa, around your Gupta name, family and business entities, also affecting that of President Jacob Zuma, the government and party is akin to a political hurricane steadily sweeping around the land.
Both the Gupta and Zuma surnames have come under pressure from various quarters, with sympathy here, hostility there; some saying there’s no smoke without fire, others countering that it’s a smokescreen. Friends are torn apart in the debate; comrades too. Critics have even joined the two names and coined “Zupta”, symbolising, as they say, greed and corruption described as state capture.
Your concern during discussions we recently had at my and later your home was apparent. Indeed, you may have considered some of my comments as so-so. Yet I know that you understand the maxim: friends tell one another the truth – no matter how unpalatable. A brief reflection on historical lessons: South Africans of Indian ancestry landed in the Cape as Dutch slaves. Two-hundred years later large numbers arrived from British Colonial India as destitute indentured labour on Natal sugar plantations.
Later other Indians, merchants and the intelligentsia arrived. Mahatma Ghandi followed in 1893, after tasting cruelty of white supremacy. He was instrumental in founding the Natal Indian Congress, forerunner to the South African Indian Congress.
In 1912, African leaders, inspired by this, formed an African congress, the ANC.
Ghandi, the iconic statesman, and later became the founding father of the Independent State of India. It became a bulwark in the struggle against apartheid and is today an ally of liberated South Africa.
the 1990s, following the lifting of sanctions, Indian business began investing here: During this time, shortly before our freedom in 1994, the Guptas came here to establish a business presence, when South Africa was at a crossroads, experiencing white capital flight to havens abroad amounting to billions of US dollars! Yours was a vote of confidence. So how did things turn so badly that the Gupta name is now linked to state capture? This requires deep introspection.
What exactly is state capture? It is a concept which in the annals of bodies like the IMF and World Bank, refers to the systemic corruption of government officials, the judiciary or legislature especially by private business interests for profit.
The ANC was formed to wage the struggle for the emancipation of all our people – black and white – from all forms of domination as proclaimed in the Freedom Charter in 1955. Thus, the country or its state cannot be captured again by any one or power for the price will be too high.
So to what extent has your family captured our state? Clearly you have not yet captured our vibrant and feisty parliament, let alone the judiciary, especially our fiercely independent apex court. Thus the thrust of the accusations and allegations against you is that of undue influence – real or perceived – over some ministers and government or parastatal officials.
Vehement denials have followed from your side. So a body is needed – the body of evidence. The public protector has been requested to investigate unencumbered. Your assistance is important. Meanwhile, the jury remains out…
Over 10 years ago, our paths collided within the business environment when our companies were co-investors in Sahara Computers. Later our group sold to yours a small mining company, JIC, which you have grown substantially. This was fair business. So, again how did things become so negative for you today?
Regardless of any findings, harm has been done to your family name. You as a leader of your entities need to take certain steps, to ensure that none of your siblings or partners may have done anything that may translate into state capture.
If otherwise then take corrective measures by pulling your entities away from value destructive controversy. Consider this as friendly advice tendered openly not because I have found you guilty of anything, but to alert you to read the signs.
Business lobbies government and vice versa. This is normal and is encouraged. What must be prevented is the crossing of the red-line; much like during labour action when workers are warned against crossing the picket-line.
Likewise business should never cross the lobby-line to enjoy unfair advantage over others.
A parting word on the other part of the so-called Zupta equation concerning president Zuma to whom several people have written letters and memoranda. One recalls seeing him and many other government and business persons, at your residence during a garden tea function.
It was a few days after he was relieved of his position as deputy president of the republic. Many around the garden raised eyebrows at seeing him there. After all, he had just been fired, he was isolated and facing possible corruption charges.
Being jobless, there was no indication of his next employment – let alone as the country’s next president. Yet you had welcomed him to your home. No doubt your relationship with him remained good.
However if, when he became the country’s president, this relationship later developed into one of unfair advantage for you, then the allegations about state capture will linger.