WMC gets fat on ANC bungling
WHITE MONOPOLY CAPITAL: RICH PICKINGS IN ZUMA’S WAKE
ANC ideologues, who pack state institutions with trusted cadres, are creating rich investment opportunities as it picks up the slack – at a price – created by consequent state bungling.
Oh, the irony. In a year that President Jacob Zuma earmarked for “radical economic transformation” during his State of the Nation address, the first serious test of his commitment to this lofty ambition has all but demonstrated the complete opposite.
Despite the enormous opportunity afforded to the department of Social Development to secure the payment of 17 million grants through the South African Social Security Agency (Sassa) and to introduce a combination of interested and capable partners – female entrepreneurs and BEE partners – state bungling means this most vital of duties again plops into the hands of White Monopoly Capital (WMC).
Beyond ideology
Make no mistake, without the involvement of Net1 subsidiary Cash Paymaster Services (CPS), this government cannot pay social grants without risking massive disruption come April 1.
So Net1 founder, chairperson, and CEO Serge Belamant, holds all the cards as the terms of the new contract with Sassa are negotiated.
Belamant knows this. And given the urgency and lack of alternatives the government has at its disposal – he will dictate the price and terms of the contract should the Constitutional Court give its blessing. Key in these negotiations will be the principle of whether CPS can make deductions prior to paying out grants – a position Sassa is stating on record it will not tolerate or agree to.
Let's see who wins that argument.
The information emerging at Sunday’s farcical press conference by Social Development Minister Bathabile Dlamini was mostly unclear and contradictory.
The new contract will have to be for an extended term because Sassa is no closer to formulating a new delivery plan than three years ago. Details of the new plan are: 1 (where we are currently): phase out Net1; 2: transition period; and 3: full roll out.
When we cast our eyes beyond the challenges facing Sassa, we see a recurring phenomenon. Curro schools (WMC) benefit from the poor standard of our primary and secondary education system. Private healthcare groups such as Netcare and Life (WMC) fill the gap created by an overburdened public health care system.
The more cadre deployment intensified at State Owned Entities (SOEs), such as Eskom, the more consumers elect to go off the grid, reducing potential income for the utility. And policy making has been ceded to the courts.
You snooze, you lose
The local government elections should have been a reminder to the ANC that democracy operates as a meritocracy – if you don’t deliver, you’re out. But there is little evidence that the ANC has realised this.
So while the president and his acolytes continue to thrash against WMC, in many ways it can be seen as an attack on the private sector. But in the absence of competent government intervention, it presents the only functioning alternative.