Experts have expressed deep concerns after it emerged that President Cyril Ramaphosa was likely to appoint the DA officials in ministries that have been key in driving economic transformation.
Economists Duma Gqubule and Mandla Maleka and former public protector Thuli Madonsela were worried this week. This after rumours that the DA would get a ministerial position for Trade, Industry and Competition (DTIC). The party would also get the Deputy Minister of Finance position. He is the default chairperson of the Public Investment Corporation (PIC).
This would be part of the national government of national unity (GNU) cabinet.
Concerns raised after DA’s letter to Ramaphosa
The concerns come after DA leader John Steenhuisen confirmed in a letter addressed to Ramaphosa dated June 24. In it he said that the party was offered the crucial economic transformation cluster ministerial positions.
“I am puzzled by GNU rumours alleging that the DA is demanding the Department of Trade and Industry. This despite …its known position of rejecting positive measures to redress race-based economic disparities. And done to achieve substantive equality at all levels of the economy,” said Madonsela.
“Why would the DA want to control the main vehicle for economic restitutive measures? A cause dictated by the Constitution but rejected by it?” she questioned.
Gqubule was also baffled by Ramaphosa’s offer to the DA. “It is becoming clear that this is a right-wing coalition, not a GNU. This right-wing coalition will be a backtrack from transformation.
All economic reforms will be reversed under DA
The experts lamented DA’s threat to the Industrial Development Corporation (IDC) and the National Empowerment Fund (NEF).
“The DA will have a minister in control of the DTIC and a deputy minister of finance. This means the IDC, NEF, and PIC will fall under this right-wing party,” Gqubule told Sunday World on Friday.
“It is a sad day for South Africa because our economy hasn’t transformed in the past 30 years. The little that has been achieved will be reversed under this coalition government. It is a reversal of transformation,” he said.
Maleka said having a deputy minister of finance position would give the DA direct access to the PIC. The entity manages assets worth more than R2.5-trillion.
He said under the ANC, the PIC had taken away the asset management component of the business. It took this from an established player in order to insource the service and build internal skills capacity.
Maleka was worried that under the DA, asset management could outsource to established players in the market. This will be to the detriment of internal skills development.
He was also worried that under the DA, the PIC could stop investing in black-owned companies.
Black Business Council is convinced Ramaphosa will not budge
However, the Black Business Council hailed Ramaphosa, saying he would not award the DTIC to the DA.
“The Black Business Council (BBC) commends president Ramaphosa for his bold and courageous leadership. [For him] insisting that the DTIC is not allocated to the control of the DA. The DTIC houses all the instruments, (BEE Commission, Competition Commission, IDC, National Empowerment Fund, etc.). These are used to implement socio-economic redress measures as per the SA Constitution,” said BBC’s chief executive Kganki Matabane in a statement.
“As such, it will not make sense at all, for the DTIC to fall under people who are 110% opposed to economic transformation. And who will deliberately continue to exclude and derail the economic transformation agenda.
BBC pledges support for the president
“…The BBC also calls upon President Ramaphosa to expeditiously finalise the appointment and announcement of his executive team. This to enable and allow the country to focus on the challenging work of decisively addressing the imbalances of the past. To also increase the persistently low rate of economic growth. And in particular, tackle the triple challenges of poverty, unemployment and inequality. These have… their roots in the apartheid period. This was when the economy was deliberately structured as non-inclusive.”
He said the BBC was fully behind Ramaphosa and will continue to work with him.
“The BBC fully comprehends the fact that this is unchartered terrain. …It is a watershed moment that needs cool and mature heads to safeguard the future of South Africa. The BBC urges all progressive South Africans to work with President Ramaphosa on taking the country forward,” he said.
