Sunday Tribune

City trade at end of its tether

Illegal protests, political killings, lawlessnes­s bad for business

- MARY PAPAYYA AND SIPHELELE BUTHELEZI

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.

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Nomsa Dube Ncube

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