Farmer's Weekly (South Africa)
The political economy of the COVID-19 crisis
It became increasingly clear during the lockdown of the past several weeks that there are two factions competing for power. One is the government centred around President Cyril Ramaphosa and his supporters, and the other is the ‘so-called ANC’ based in Luthuli house headed by ANC Secretary General Ace Magashule, uMkhonto weSizwe Military Veterans Association spokesperson Carl Niehaus and others.
Actually, this latest cabal does not involve the entire ANC, just a prominent faction opposing Ramaphosa, informally called the Radical Economic Transformation Movement.
According to Bloomberg, the ANC has struggled to convey a coherent and consistent message about how the country should be run, with senior officials from opposing factions issuing conflicting policy statements. While Ramaphosa, Finance Minister Tito Mboweni and ANC economic transformation head Enoch Godongwana have stressed the need to encourage investment and growth, a group that includes Magashule wants the emphasis to be placed on giving the black majority a bigger stake in the economy.
Proposals to allow the state to seize land without compensation, nationalise the central bank and direct pension funds are among the main points of contention.
BAILOUT PLAN
South Africa’s bailout plan for the current coronavirus diseases (COVID-19) crisis demands that money be sourced from somewhere. At first Mboweni made the statement that, “there is no time for ideology. If not the IMF [International Monetary Fund], then give me the money. I cannot eat ideology”.
Magashule, SACP Deputy General Secretary Solly Mapaila and Cosatu General Secretary Bheki Ntshalintshali accused him of indiscipline, without as far as I know, providing an alternative source of funds.
Fortunately, as we have seen, Ramaphosa concurred with Mboweni and some of the money for the R500 billion COVID19 stimulus package will be sourced from the World Bank, the IMF and the BRICS New Development Bank.
• However, corruption has once more reared its ugly head. According to a report by Jordan Griffiths in the Daily Maverick, food parcels have emerged as a key tool of ANC policy.
POLITICKING AND CORRUPTION
First, a tender for food parcels was issued, a specification was drafted and sent out, and companies bid to provide government with food parcels.
Perhaps the various companies that won the bids are politically connected, or has captured officials within the state, and therefore a food parcel that should cost R500 comes in at R1 000.
In Mangaung, allegations emerged that food parcels valued at R1 200 contained only a 1kg bag of sugar, a tin of sardines, a loaf of bread, a pack of maize meal, and a cabbage.
Second, once created, the food parcels are then duly delivered to the relevant departments, which must take charge of distribution and storage. In the case of the Gauteng Department of Social Development, no sooner did this happen than officials involved in the process were accused of giving the food parcels to their own family members.
Third, one of the worst ways to distribute food parcels is through the use of councillors who immediately politicise and hijack the whole process. News24 reported in the last week of April that in every province in the country, excluding the Western Cape, incidences of food parcel corruption had been reported.
There were reports of trucks delivering food parcels to ANC politicians’ homes, which were then distributed to ANC members; in other cases, non-ANC wards were deliberately omitted from receiving food parcels; and there were multiple reports of ANC councillors or members stockpiling food parcels in the run-up to their own branch meetings.
It would seem that at every level where there is a distribution and/or a competition for resources, a struggle for control, and thus the possibility that the funds or food will be misused.
What hurts the most is that the callous politicking of individuals leads to people going hungry.
nine million tons of silage made annually by only 3%, we can fill farmers’ pockets with nearly R130 million in increased milk and meat production [income] without increasing production costs. This competition benefits the entire agricultural value chain by increasing farmers’ sales and by unlocking value for brokers,” Diedericks said.
Santam Agriculture has been the main sponsor of this competition since its inception, and its aim was to spearhead growth and sustainability throughout the agriculture sector.
“It was an easy decision for us to take on the role of main sponsor of the Santam Agriculture National Silage Competition.
“We support our clients through key areas such as risk management and help them to realise the importance of silage in various production processes,” according to Diedericks.
The competition generated useful data for participating companies, farmers, as well as academic and research institutions. It was scientifically presented, followed an internationally accepted protocol, and was specifically aimed at the commercial farming sector, he said.
The 2019 competition was especially tough, boasted a record number of entries and the points awarded surpassed the previous year’s achievements.
Westend Landgoed near Morgenzon, Mpumalanga was crowned the silage king and grabbed first place in the maize silage category. Hurwitz Farming, near Delmas in Mpumalanga, won the feed sorghum category, and farming business De Draay near Riversdale in the Western Cape secured first place in the oats silage category.
For more information, email deidre@plaasmedia.co.za. Entries for winter grains have already closed, but entries for summer grains are open until 15 May. – Staff reporter