City trade at end of its tether
Illegal protests, political killings, lawlessness bad for business
TOP Kwazulu-natal business leaders will meet provincial premier Willies Mchunu this week to address the almost daily illegal and violent protests that are disrupting operations in Durban.
Also on the agenda is the surge in political assassinations, brazen criminal attacks and death threats against auditors investigating ethekwini Municipality’s finances.
The lawlessness threatening governance is driving away investors who could provide much-needed employment.
This has alarmed organised business and investors, and concerned leaders are calling for intervention to restore stability to the province and the municipality.
The criminal activity encompasses recent political and criminal assassinations, hostage-taking of city officials, the disruption of the road networks, and the looting and torching of cargo trucks.
This comes amid disruptive and often violent service delivery protests, with access to Durban’s port disrupted, even blocked.
The crisis deepened this week with an unprecedented turn of events: the Auditor-general had to withdraw an audit team from the ethekwini Municipality after they had received death threats.
The auditors had requested documents and reports from the supply chain management and city integrity investigation units.
Exactly what was requested has not been disclosed.
The AG has since engaged “relevant national, provincial and local government leaders about threats made to its audit teams”.
“The AG takes any threats against its team members seriously as it is important for our employees to execute their duties independently, honestly and without fear,” said AG spokesperson Africa Boso.
He said the AG was encouraged by the commitment shown by the “relevant government leaders to addressing this matter with the sense of urgency it deserves”.
He declined to comment on whether this included ethekwini mayor Zandile Gumede and city manager Sipho Nzuza.
Gumede and Nzuza called a press conference on Friday to say the auditors’ security concerns were being addressed.
On Wednesday, two senior managers at Durban Solid Waste were held hostage by members of a business forum demanding payment. No arrests have been made.
Former city manager Mike Sutcliffe has weighed in on the latest incidents, saying the situation needed firm intervention. He said the death threats against the auditors were “unheard of”.
“Should the matter not be resolved, the worst-case scenario may arise where the municipality is put under administration by the premier, other officials and the MEC for Co-operative Governance and Traditional Affairs.”
Sutcliffe said such an intervention would mean the suspension of the council, with the metro being managed by an external administrator. “It’s scandalous. The AG has an important role to play,” he said.
“What has transpired is like someone phoning the police and threatening them over an investigation they’ve undertaken,” said Sutcliffe.
Cogta’s Nomusa Dubencube assembled a team to investigate. “We cannot have a situation where the Auditorgeneral’s team is walking out of a municipality on security threats when we are, at the same time, working overtime to support municipalities with their audit improvement plans.
“The audit process requires full co-operation from municipalities and this is non-negotiable,” said Dube-ncube.
On the possibility of placing the metro under administration, she said it was premature. “We will hold a meeting tomorrow with the AG’S office to gather full details, and to receive further explanations and facts on the allegations. Until such time, it is premature to pronounce on any outcome.”
Meanwhile, the president of the Durban Chamber of Commerce, Musa Makhunga, and the Minara Chamber of Commerce president Solly Suleman, have said broader political instability and violence in the province had also become deeply worrying for investors.
“Regional, national and international investors are reluctant to invest in our province. This lack of investment means no jobs. Knowing this outcome, it is important for all stakeholders to come together and find solutions.”
He said the chamber was committed to working with all parties to resolve the situation, hence the request for intervention by the premier.
“We understand the reality of the situation especially with regard to economic transformation. We want to be a partner to find solutions. While government is the enabler for the environment for business to thrive, as business we must also come to the solution table.”
Makhunga said: “These issues have given rise to a volatile business environment. Investors within the real estate sector are now reconsidering the deployment of capital into KZN due to the increased risks. Property developers are getting hit as a result, with subscription rates on new developments plummeting to unprecedented levels.
“A significant number of Durban businesses have sustained tremendous losses and several international companies are being held hostage to extortion by criminal elements. The first priority is to safeguard life, public and private property, and goods in transit to avoid further losses and eliminate growing anarchy.
“As business, we understand that economic transformation is an imperative and a muchneeded intervention to address inequality, unemployment and poverty. This requires collaboration by organised business, labour, civil society and other social partners to find lasting and workable solutions.”
The planned meeting between business leaders and the office of the KZN premier is scheduled for Thursday.
Mchunu said the initiative would be a multi-stakeholder platform. “The discussion will bring together organised business, government, law enforcement and social partners to address key issues that are threatening the province’s economic growth prospects.
“It is clear that a co-ordinated and decisive response is required to provide adequate insight into the issues, restore order, safeguard lives and goods, ensure productivity continuity for industry, entrench the rule of law and reassure investors that our province remains a prime destination for investment.”
Recent flare-ups of violence have plagued Kwazulu-natal, including the following key incidents:
N3 Mooi River toll gate truck torchings and disruption of smooth flow of traffic affecting a number of sectors.
Violence and damage to public property in the Moses Mabhida Stadium with devastating results for the tourism and investment sectors of Durban and KZN.
Construction site invasions, extortions and rising tensions in townships between local and refugee traders.
Attacks on private citizens in public places including academic institutions and places of worship.
Political killings over the course of the past two years.
Blockades to the Durban port which compromise businesses throughout the country.
The disruption of the new Go Durban bus infrastructure, allegedly by taxi bosses unhappy with aspects of the development.
While the province has a tough task ahead in addressing this public violence, not all is doom and gloom on the national stage.
The S&P Global this week maintained its outlook on South Africa as stable.