Get your heads around this, ANC supporters: corruption equals collapse
Most of SA’s state-owned entities (SOEs) have reached the point where corruption, incompetence and mismanagement have brought them to their knees. With the high cost and time needed to resuscitate them, and ANC rankand-file opposition to the shock therapy needed to do so, it will be cheaper to close them or hand them over to the private sector.
SA will see the systemic failure of a number of SOEs as they have reached the point where they cannot be saved because doing so will be too costly for the fiscus, without guarantees of success.
We often talk about a failed state, where it has collapsed to such an extent that it cannot execute basic functions such as protecting citizens, delivering fundamental services and controlling its borders. We can also make an argument for a failed state company, one that has disintegrated to a point where it cannot fulfil its mandate.
Such a company has to be continuously bailed out, its employees only there to receive pay cheques and contractors imbursed for almost non-existent, ineffective or inadequate services.
In a failed state entity, corrupt individuals, organised criminal networks and political and trade union interests entrench themselves in every aspect of the business and fiercely resist attempts to cut them off. The interests of such people are also entrenched in the ruling party, so cleaning up a failed state entity necessitates taking on powerful political interests.
Many citizens underestimate how corruption breaks down SOEs by destroying value, capacity and assets to a point where they cannot be turned around unless they are handed over to the private sector to administer the necessary shock therapy, including rightsizing staff, closing certain operations and ending contracts, something the government won’t do for fear of losing voters.
Corrupt ANC leaders, government officials and SOE executives are often heroworshipped by those unable to make the connection between their nefarious activities and the collapse of the public service, business closures and unemployment
There is a naive belief that all that is needed to turn around a failed SOE is a new CEO or board. The irony is that the ANC government often appoints outsiders not connected to its leadership elite to head state entities when they have failed almost to beyond turnaround. This leads to frustration among ANC rank and file when they are not turned around overnight. Sadly, when naive external executives or board members are brought in to perform miracles and are unable to do so, their careers are buried.
Since the end of colonialism many state companies in Africa have been forced into privatisation or closure, not because of neoliberal policy engineered by the World Bank and the International Monetary Fund (IMF), as some argue, but because they were so run down by corruption and incompetence that nothing could be done to resuscitate them.
SA now faces the same dilemma, a politically heavy one for the ANC.
Ruling party ideology aside, when a country is on its knees economically there is no choice but to let go of corrupt state entities because the fiscus does not have the money to pour into a seemingly bottomless pit.
This, of course, will lead to job losses, business closures and indebtedness. The bigger issue, however, is that citizens’ acceptance of corrupt politicians and public-sector executives poses a great risk to SA. Corrupt ANC leaders, government officials and SOE executives are often hero-worshipped by those unable to make the connection between their nefarious activities and the collapse of the public service, business closures and unemployment.
It is not in the interests of ANC members and voters to support such leaders and executives as they will pay with their jobs, businesses and public services. The privatisation of state entities is forced upon countries by corruption, mismanagement and incompetence.
A collective mindset change is required from ANC supporters. They must not tolerate corruption by the party and its leadership because the consequences will be the collapse of state entities, public services and, ultimately, SA.