State capture can be traced back to BEE

THE concerns raised by Terence Grant (Cape Argus, November 9) should receive much more national attention.

The heading of his letter, “Ruling vindicates my argument that BEE forces poor to pay more for power”, should rather have stated that BEE forces the poor to pay MUCH more for power.

Thanks for him once again highlighting the disastrous effects of this policy.

In the same edition of the Cape Argus, Siyabonga Hadebe refers to, “The BEE conundrum”, but fails to understand or expound the disastrous effects of BEE.

I had almost come to the conclusion that no blacks were able to realise the disastrous effects of BEE, until I read a report by journalist Ray Mahlaka who stated: “Although well intentioned … BEE and preferential procurement laws often provided a loophole for corruption during the state capture years.”

Thanks for this word of truth! The government’s procurement process, which is estimated to be in excess of R2 trillion annually, has extensive compulsory BEE requirements built into it.

This has ensured that there is a built-in opportunity for massive fraud and corruption which singlehandedly made state capture possible.

Products now have to be bought at 10 to a 1 000 times their price on the open market.

Billions of rands thus flow into the pockets of a minuscule number of black tenderpreneurs who squander the money on cars and luxury houses that should have been utilised for housing, hospitals, schools, school toilets and numerous other facilities for the poor as well as reducing the cost of utilities.

BEE is the main reason why there will be no increase in salaries of government employees for the next three years, as well as the reason for the collapse of virtually all statecontrolled entities.

The resultant effects of BEE is causing the financial collapse of South Africa, as is spectacularly confirmed by the evidence presented at the Zondo commission.

BEE has resulted in making it exceptionally easy for South Africa to become the fraud and corruption capital of the world, as well as creating new words (for us) like “state capture”.

Grant asks why the DA was not aware that Minister Gordhan had overstepped the mark with his entrenchment of BEE policies and did nothing about it?

It seems that the DA was so focused on being an “ANC-lite” and trying to give an impression of being politically correct and not being offensive to the masses, that they did not want to rock the boat and ask difficult questions.

When will sense prevail regarding the actual effects and disastrous outcomes of BEE, or have things gone so far it is impossible for South Africa to lose its status as the fraud and corruption capital of the world, where the national past-time of many of our leaders is state capture until the country is bankrupt, as has now happened?

BERNHARD FICKER | Somerset West