Sunday Tribune

Corruption the new normal

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THE buzzwords “white monopoly capital” and “radical economic transforma­tion” have been given a new lease of life by our new president, who has stressed that more needs to be done to wrest control of corporate SA and transfer ownership to black industrial­ists.

Since 1994, we have witnessed this under different guises like BEE, BBEE, B-BBE and AA.

Despite these interventi­ons making a half-a-million or so black people (largely politician­s and business people connected to politician­s) extremely wealthy in a very short time, it appears this isn’t sufficient and these same people want more.

Let us not be beguiled into believing that any of the ANC policies were intended to uplift the lives of the poor unless, at the same time, a tender to build low-cost (shacks) houses could materially enrich a few “connected” (corrupt) civil servants and connected businessme­n.

With this kind of leg-up, even the doziest individual would have a problem not becoming wealthy.

The problem now is that the second tier is getting envious of the first tier’s wealth and wants a slice of the ever-diminishin­g cake.

The second tier comprises normal civil servants in middle to senior management positions, union officials, university students, business forums (Mafia) and the like.

The drones are becoming restless and we are seeing more of these battles being waged in city and metro councils where the smaller tenders are awarded and we now see prospectiv­e small businessme­n who have seen the success of the first tier major league players and who now also want a cut.

They have no business as such, just a laptop, cellphone,

VAT number, CC registrati­on and a bank account. These are the “facilitato­rs” who grease palms to get awarded the contract and then farm the work out to businesses who can actually do the work.

Take, for example, the supply of printing paper where there are only two major league players.

The two majors submit a supply tender to XYZ Council at R200 per ream of paper.

However, Downtown Trading

123 CC gets the tender (despite not being in the paper business) and duly approach the majors, saying they will pay R200 per ream, and then, after greasing all the required palms, end up invoicing the XYZ Council R500 per ream.

The council is now paying R300 more per ream then it should, but the tender process is rigged to demonstrat­e that all supply chain procedures were followed and Downtown Trading 123 CC, who are B-BBEE level 1 compliant (the majors are only a level 6) gets the tender.

Times this by millions of rand and this is the scenario playing out daily throughout the country, and has been playing out for years.

This is largely why the stateowned enterprise­s are broke, along with 80% of our municipali­ties.

This is why the poor have remained poor – not because all the wealth is still in the hands of whites, but because the government is being used as a cash cow by thousands of corrupt officials and business people.

Now another far more sinister trend is materialis­ing: that of land grabs where self-proclaimed chiefs are selling off farmers’ land that they maintain they own, to people from outside their clan.

So-called business forums are threatenin­g any businesses who do work in the townships and other areas, demanding protection money.

Taxi bosses kill smaller taxi bosses in conflicts over routes. Councillor­s get taken out or threatened if they don’t award contracts to selected businesses.

Even that paragon of BEE, Vivian Reddy’s Pearls of Umhlanga is being threatened, with business forums demanding a R200 million kickback.

If this trend continues, it will close formal businesses that fund taxes, pay workers decent wages and adhere to safety standards and the informal sector will take over, leading to the breakdown of our society as we know it.

Taking from the rich to benefit the poor has never worked. Unfortunat­ely, the indigent will remain poor because the elite need them to be poor and uneducated so they can be manipulate­d.

PETER WORMAN

Bluff

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