Sunday Times

Lacklustre ANC leaders cannot stop the rot alone

- WILLIAM GUMEDE Gumede is associate professor at the Wits University School of Governance and author of South Africa in BRICS (Tafelberg)

Thanks to state capture, incompeten­ce and mismanagem­ent, since 1994 SA has squandered almost the equivalent of the postwar financial aid that the US, in the form of the Marshall Plan and other programmes, gave countries in Europe and Asia to rebuild their economies.

The amounts lost since 1994, which could have gone to stimulate growth and developmen­t and deliver public services, are staggering: more than R2-trillion has been swallowed up by out-and-out public corruption, and the government has given state-owned enterprise­s upwards of R2-trillion in bailouts.

These figures don’t take into account the value — in jobs and growth — that is lost when establishe­d companies close or new ones are stillborn and potential projects never leave the drawing board. This is the toll of patronage appointmen­ts in the public sector, of competent companies unfairly losing state contracts that go to crony companies, and of the marginalis­ation of competent people whose sin was to lack political connection­s.

Since 1994, close to R1-trillion has been transferre­d in BEE deals that went to a handful of politicall­y connected politician­s, trade unionists and public servants. First, very few of the recipients are entreprene­urs — they are political capitalist­s.

Not surprising­ly very few have added value by creating new industries, opening new economic sectors or developing new technologi­es. Instead, they have crowded out genuine black entreprene­urs and killed the developmen­t of a mass entreprene­urial spirit in black society, because all you need to secure a BEE deal or tender is the right political connection­s.

SA has very little to show for the missing “developmen­t” trillions in terms of an improved public education system or new industries and infrastruc­ture.

We have to honestly face the fact that a predominan­tly black post-apartheid government has done this. Coming to grips with this painful reality will mean a change in mindset about economic developmen­t.

We will have to plan an evidence-based, realistic and pragmatic national economic turnaround plan.

Black victimhood — blaming white monopoly capital and Western imperialis­ts and doomsayers

— will not help, because it causes paralysis, dulls the imaginatio­n and misdirects energy.

There has to be more urgency among ANC supporters and everyone else to force the ANC leadership to

“get it” that it bears most responsibi­lity for the crisis in which we find ourselves — and that outdated responses will not suffice.

Currently, the top ranks of the party appear to be bereft of leadership quality, ideas and imaginatio­n. The ANC seems to have deliberate­ly elected or appointed the least capable members it can find to senior positions.

The small dominant group that controls the ANC and the government is just too insular, out of ideas and lacking in imaginatio­n to get us out of this crisis. There has to be cogovernan­ce between the state, business and civil society.

Whatever developmen­t funds are mobilised, and whatever projects are initiated, should be run not by the government or party alone but in tandem with independen­t business, entreprene­urs and civil society.

Every skill, resource and talent available in the country must be marshalled in a national reconstruc­tion effort. The country cannot afford to marginalis­e people based on skin colour, ethnicity or ANC affiliatio­n.

Where possible, money lost through corruption should be seized from the guilty.

Corruption should be made a crime against the people. Many lives have been lost because a crooked tender meant a hospital had no medicine. Millions continue to live in squalor because the national social housing programme has long ground to a halt.

BEE in its current form should be scrapped, and businesses should divert “BEE” money away from political capitalist­s and into infrastruc­ture, housing and education.

Victimhood will not help because it causes paralysis and dulls the imaginatio­n

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