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22 Apr, 2020
UDM’s reaction to Ramaphosa’s economic stimulus package
The United Democratic Movement (UDM) welcomes the announcements President Cyril Ramaphosa made on government’s plans to temper the impact of the Coronavirus pandemic on South African’s lives and stimulate the economy. With this R500 billion stimulus package the government is falling in step with governments around the world, which have embarked on massive fiscal stimulus packages and expansionary monetary policies to counter the negative impact of the Coronavirus on their economies. This is directly in line with the UDM’s long-standing policy that: “Government Must Do More” and get back to the original agenda of addressing the backlogs and imbalances of the past and high levels of inequality in South Africa. We are pleased that SMMEs and the informal sector have been targeted for assistance and growth, and that mention was made of salary and job protection, as well as extended social grants. As is the case in America with the Federal Reserve Bank, we are of the view that the South African Reserve Bank has a critical role to play in providing a pay-cheque protection liquidity facility, and other facilities, to commercial banks so that they can provide loans to small businesses to maintain their payroll during this difficult time. Banks would then provide monthly updates to the Reserve Bank about the number and value of the facilities extended for this purpose. We are of the view that the South African Reserve Bank should introduce similar facilities to commercial banks in order for them to use these facilities for targeted sectors of the economy, as part of the Reserve Bank’s broader “Coronavirus Pandemic Response Programme”. We also believe that there is scope for the central bank to further reduce the interest rate as a way to stimulate the economy. Furthermore, the jobless benefit should also cover freelancers and those who work in the informal sector. In particular, the UDM feels that Unemployment Insurance Fund (UIF) pay-outs should be handled on a sectoral level and that employers should apply for these pay-outs on behalf of individual employees rather than individual applications clogging up the system. There should also be a three-month moratorium on bond, car and other loan payments, as these are still left to the discretion of commercial banks which are sometimes reluctant to give loan recipients a breather because they use payment profiles and credit records to make their decisions. In the same vein to the UIF scenario, it would make more sense to do this to avoid clogs in the system and people standing in endless queues outside banks in contravention of the stay-at-home regulations and putting themselves in danger of contracting the Coronavirus. A stay on bank account closures and bank fees, due to bad bank account conduct and returned debit orders, is needed. We also think that life insurers should be brought on board to create breathing space for policy holders, by allowing a three-month payment holiday. Once all these relief measures are put in place, and in view of the fact that taxpayers who donate to the Solidarity Fund will be able to claim up to an additional ten percent as a deduction from their taxable income, South Africans will be in a position to contribute to the Solidarity Fund. A call should also be made to all sectors of society, celebrities and private businesses and other arms of the state which have not made a public declaration on contributions, to lead by example, and contribute to the Solidarity Fund. Government must also immediately settle the R7 billion debt owed to its small and medium enterprise service providers, which, beside it being the right thing to do, will serve as a lifeline and important stimulus package for SMMEs. Localisation of our economy is paramount. In light of the Coronavirus crisis we should ensure that during this time all protective equipment is produced and sourced locally. This could be a magnificent project to create jobs in the informal sector and in rural areas, for women in particular. This strategy should be continued post-Coronavirus and our manufacturing industry should be brought up to scratch so that South Africa is less dependent on imported goods and we should not be a dumping ground for other countries. In principle, we support the economic stimulus package as it is good on paper and it is in line with our social democratic values of equality and solidarity as the plan seeks to ensure that our country’s resources are arranged to the greatest benefit of the most vulnerable and the poorest of the poor. The UDM, however, strongly believes that if government had recouped the R500 billion stolen during state capture, South Africa would not have had to stand in the queue for loans from the World Bank, International Monetary Fund, BRICS New Development Bank and the African Development Bank. In addition, we are sceptical of government’s political will and ability to manage South Africa’s finances under the current circumstances. The reason being that, given for instance state capture, it does not have a proven track-record and also, given the extraordinary circumstances created by the Coronavirus pandemic, there are not sufficient checks and balances in place to monitor government’s income and spending. Just now we will need a Coronavirus Commission of Inquiry, post the crisis, which we cannot afford. Time will tell. Issued by: Mr Bantu Holomisa UDM President
Admin
19 Apr, 2020
UDM calls for urgent meeting of Public Enterprises Portfolio Committee to discuss SAA
Early in February 2020, Public Enterprises Minister Pravin Gordhan briefed the Portfolio Committee of Public Enterprises and the Standing Committee on Public Accounts on the December 2019 decision to put South African Airways (SAA) under business rescue. A decision was then taken that the business rescue practitioners (BRPs) were to table their business rescue plan to these Committees by March 2020. This did not happen due to the Covid-19 lockdown. As we now know, the initial R5.5 billion government had provided to sustain the business rescue process has been spent and Minister Gordhan has apparently refused the additional R10 billion the BRPs have asked for to cover the costs of resuscitating SAA post-lockdown. The BRPs have already asked, and received, three extensions of the deadline to publish their business rescue plan. Why are they dawdling and missing their deadlines? At the rate they are going one wonders whether they plan to rescue the airline or whether they have a mandate from some quarters to destroy it. The United Democratic Movement (UDM) is of the view that SAA’s BRPs have been running roughshod over the process and the fact that the Public Enterprises Portfolio Committee has not been meeting due to the Covid-19 lockdown, means that no oversight is taking place. This is serious cause for concern. We now hear that SAA is offering severance packages to its approximately 5,000 employees, a proposal the BRPs have come up with after government indicated that it is broke. This threat of job losses is a move on the BRPs’ part to blackmail government, and therefore the taxpayer. From the UDM’s point of view, those who have looted SAA with impunity during state capture must be brought to book, because if the stolen monies were paid back where it belonged, it could have been used as a resource to avoid retrenchments. SAA’s thousands of workers should not be made to suffer because of a few greedy individuals who have appropriated public funds for private use. For the UDM, the key issue is that business rescue must be dealt with comprehensively and not in the piecemeal fashion we have been witnessing. For instance, the nation had been informed that SAA planned to sell assets to fund the proposed retrenchment process, but one wonders at the move to do so before there is a rescue plan in place? It is critical that the Minister of Public Enterprises tables the rescue plan before the Public Enterprises Portfolio Committee and that he explains the circumstances around SAA so that pertinent questions may be answered. Another matter that the Minister needs to explain and discuss with the Committee is that SAA, like other state-owned enterprises, is top heavy. The UDM therefore believes it is critical that this Committee should urgently meet in a virtual setting to receive the Minister’s report and to discuss SAA’s situation and the so-called rescue plan. Issued by: Mr Nqabayomzi Kwankwa, MP UDM Deputy-President and Chief Whip in the National Assembly Member of the Public Enterprises Portfolio Committee
Admin
17 Apr, 2020
UDM donates to Coronavirus Solidarity Fund
Ms Gloria Serobe Chairperson of the Solidarity Fund Dear Ms Serobe UNITED DEMOCRATIC MOVEMENT’S DONATION TO SOLIDARITY FUND We greet you at this critical time of South Africa’s battle against the Coronavirus pandemic on our shores, in the spirit of empathy and unity. In line with President Cyril Ramaphosa’s call that public representatives make donations to the Solidarity Fund, as one of the tools which this nation is using to combat Covid-19, the United Democratic Movement’s (UDM) public representatives, at all three levels, is pledging R300,000 to the Fund for three months, starting in June 2020. Over and above that, the UDM has set aside R200,000 for the purchase of masks and food for needy families. We hope that these donations will make a difference and wish you God’s speed in all your efforts. Yours sincerely Mr Bantu Holomisa, MP UDM President
Admin
09 Apr, 2020
Holomisa writes to NCCC re COVID-19 lockdown review
Dear Chairperson of the National Coronavirus Command Council IMPORTANT MATTERS TO CONSIDER DURING THE COVID-19 LOCKDOWN REVIEW I wish to thank you for taking us, as political parties and stakeholders in South African society, for the confidence you showed in consulting us regarding the COVID-19 lockdown. We still endorse this critical move to find a lasting solution. We realise that this is a trial-and-error process and in line with your announcement that the decision for a lockdown will be reviewed, I ,yesterday, took it upon myself to do a snapshot survey asking South Africans the following on my social networks: “South African Review of Lockdown. We are past the halfway mark of the 21-day lockdown period and the government is busy reviewing the effectiveness of the lockdown in preventing the spread of Covid-19. Which regulations do you think should be reviewed and why? I intend compiling your suggestions and submit them to the President since he involved us as leaders of political parties right from the beginning in this coronavirus saga. I anticipate that he might consult us once more, if he intends to make changes. All the best.” Please note that, browsing through these comments, people, amongst others, are calling for government to carefully investigate the economic impact of the lockdown, given that the socio-economic conditions of South Africans are remarkably diverse and that no one solution can fit all. I submit these comments as is, but it should go a long way in finding a lasting solution; please see their comments and proposals on Twitter and Facebook. There are a number of well thought through ideas and comments from the people closest to this pandemic. Please also see the attached email from Ms Diane Redelinghuys for some additional suggestions. However, please note that the United Democratic Movement (UDM) is concerned that there are signs of maladministration regarding tenders during this time as evidenced in the City Press article: “Outrage over Gauteng’s 24-hour, R30m express tender” published on 5 April 2020. See also a Sunday Times article of 5 April 2020 “‘Sub-standard sanitisers, masks for soldiers’” and “Soldiers ‘forced’ to patrol streets during lockdown in ‘unsafe gear‘” regarding R10 million that had been spent on allegedly unsafe sanitisers and masks. There are also allegations of a R50 million tender allocated to a certain Kirinox non-profit organisation to provide services for the homeless and street children’s shelters (see the announcement by the Deputy Minister of Social Development on the left). We hear that this NPO has already submitted an invoice for R20 million. Regarding Minister Ndabeni Abrahams’ now infamous visit to Mr Mduduzi Manana’s house during lockdown, the jury is still out as to exactly what was being discussed in a situation where you have a minister and staff of the presidency present, and that the host had the temerity to say that the minister only came to fetch personal protective equipment, as a donation from his foundation. There are legitimate worries that this could be the tip of the iceberg and since Parliament and the provincial legislatures are shut down, there is no level of oversight and monitoring. In addition, people are concerned that there is no mechanism in place where any suspected maladministration and corruption can be reported. The UDM would therefore suggest that a small body be put in place, comprised of representatives of the Human Rights Commission, National Treasury, the Special Investigation Unit, the National Prosecuting Authority, the Auditor General, the Hawks and the police, to monitor government’s tendering processes during this time. This oversight and monitoring body, chaired by a judge, should be given the necessary powers to act, as ministers and deputy-ministers tend to give political directives to accounting officers. Given the history of this country, we cannot rely on the word of ministers and/or deputy-ministers in these matters. We hope that you and your colleagues will take our citizens’ and the UDM’s suggestions on board in the review of the COVID-19 lockdown. Yours sincerely Mr Bantu Holomisa, MP UDM President
Admin
24 Mar, 2020
COVID-19: Holomisa writes to NCCC: “Keep SA clean”
Dear Chairperson of the National Coronavirus Command Council CRITICAL IMPORTANCE OF ENVIRONMENTAL CLEANLINESS AND HEALTH DURING COVID-19 CRISIS AND LOCKDOWN As I stated at the Union Buildings on 22 March 2020, when the President and some of us as political leaders addressed the nation, the United Democratic Movement (UDM) believes that in order for South Africa to succeed in combating COVID-19, our plan should be guided by discipline, clean environment, speed and control. Even though all the other legs are vital, the UDM believes that a clean environment is of paramount importance. For, whether one lives in the rural villages, townships, informal settlements, cities, towns and even the leafy suburbs, the phenomenon of littering and dumping can be seen all over. As we know, the socioeconomic impacts of a dirty and foul environment run abound. Littering and dumping can promote the transmission of disease and in particular, for example, tyres and containers are perfect for collecting water and provide ideal places for mosquitos to breed, disease carrying rats multiply in these environs and contaminated medical waste can spread diseases. To compound matters, there is already anecdotal evidence that rats are becoming a problem where countries have imposed a Coronavirus lockdown as, for instance, restaurants abandon activity and people leave garbage bags out in the open, which attract rats. Now that the streets are empty of people, rats have come from their hiding places and move around with ease. Waste management in this critical period of our nation’s health should be on all our minds, but especially on that of government. As an essential service, government cannot drop this ball. However, it is not only incumbent on government to do something about environmental health and waste management. We therefore call on the National Coronavirus Command Council to direct our nation to de-litter and clean their environs as a matter of urgency. Shop owners must clear packaging and other waste materials from the backs of their shops and alleyways. Vehicle drivers, especially those in the public transport industry, must ensure that passengers do not throw garbage out of car, bus, taxi and train windows. Factory managers and owners must urgently clear dump sites on their properties. Most importantly, each individual person must take responsibility for his/her actions and surroundings, and should stop this mentality of thinking it’s someone else’s problem or that it isn’t a problem at all. As from now on, anyone seen littering or throwing out things from a vehicle window, must be stopped and made to pick up his/her garbage. We need to instil a new culture of tidiness and personal environmental responsibility. Unfortunately littering and dumping sites have scarred our environmental landscape for decades and the mess has been building up. In order to help government to catch-up and level the ground, so to speak, the Council may want to appeal to truck-owners and construction companies to make their equipment available to reinforce municipalities in dealing with this problem, thus embarking on a massive 21-day clean-up exercise. If our proposal is accepted, ideally speaking, one of the unintended consequences of this Coronavirus lockdown could be a cleaner South Africa. The UDM would like to take this opportunity to wish upon the President and the National Coronavirus Command Council the strength and stamina required to see South Africa through this crisis. God bless us all. Yours sincerely Mr Bantu Holomisa, MP
Admin
12 Mar, 2020
PIC report: the UDM is vindicated on Harith
The United Democratic Movement (UDM) welcomes the publishing of the long-awaited report of the Mpati Commission of inquiry into the Public Investment Corporation (PIC). We are happy that, even though President Ramaphosa took his sweet time in releasing it, it does not seem as if there was any attempt to lessen the blow. We have been vindicated with the Commission’s findings which attributes improprieties to the PIC senior management for failure to manage decision-making in a professional and honest manner. The Commission found in particular that the former CEO, Dr Dan Matjila was dishonest, and the PIC board merely rubber-stamped his decisions. In particular the UDM is happy that the Commission cut to the bone in its findings around Harith, saying that the company managed the PAIDF I and II “at significantly high fees” and that the earnings and incentive schemes provided rich rewards for those “…selected by the PIC… confirming that PIC directors and employees used their positions for personal gain and/or to benefit another person.” “Harith’s conduct was driven by financial reward to its employees and management, and not by returns to the GEPF. In essence the PIC initiative, created in keeping with government vision and PIC funding was ‘privatised’ such that those PIC employees and office bearers originally appointed to establish the various Funds and companies reaped rich rewards.” Even though we are proud of the fact that we championed the cause in getting the rot exposed at the PIC, the sad part is that the damage done will be everlasting. At this stage, we certainly hope that the National Prosecuting Authority, and other authorities, will run with the ball and bring any and all guilty parties to book. This process should be a lesson in point for the greedy hyenas out there that they will not get away with corruption and mismanagement. The UDM will be scrutinising the details of the almost 1000-page report in due course. Issued by: Mr Bantu Holomisa UDM President
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12 Mar, 2020
No to a Quarantine Centre in Limpopo
The United Democratic Movement in Limpopo is disheartened by the unliteral decision taken by the Department of Health to bring South Africans who are to be repatriated from Wuhan, China which is the Capital of Coronavirus to Limpopo. As much as Limpopo is a friendly province, it must not be taken for granted and unduly expose its citizen to this deadly virus. One is tempted to conclude that the province is being punished for not having anyone so far who has been diagnosed positively with Covid-19. The UDM supports the call that has been made by other organisations that these citizens coming from Wuhan were supposed to be quarantined in their respective provinces as this was going to make it easier to manage the situation. This is the problem of the entire Country and it must not be made to look like it is a problem of Limpopo hence the UDM support the call that the provinces must share responsibility of taking care of the repatriated citizens who are expected to arrive tomorrow. The relationship between the Ranch Resort and the ruling party must not compromise or put the lives of the people of Limpopo and the employees of this resort in danger unnecessarily. The UDM calls upon the Minister of Health, DR Zweli Mkhize and his government to come to their senses and stop this dangerous act. Issued by: Ms Motlatso Selomo UDM Limpopo Chairperson
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06 Mar, 2020
UDEMWO welcomes the forensic report of Enoch Mpianzi
The United Democratic Movement Women’s Organisation (UDEMWO) welcomes the forensic report of Enoch Mpianzi. The Gauteng MEC of Education Mr Phanyaza Lesufi has done a sterling job to make sure those that are implicated are brought to book timeously including the Headmaster of Parktown Boys. Though this will not bring closure to the Mpianzi family, but it is a warning to many more schools that Nyathi lodge is not a befitting camping site as Enoch is the fifth pupil to die there while taking part in a water activity. This institution should be closed as it has become a death-trap for our children. The Parktown Boys High School Governing Body’s silence is too loud, it raises so much concern, not only to the parents of children at the school but to South Africa as a whole. The UDEMWO would like to thank the South African Human Rights Commission for stepping in on this pernicious case and assisting the Mpianzi’s family when they had no one else to turn to. We hope this type of negligence will not happen to any of our schools, this should be a lesson learnt to everyone in the Education fraternity. Educators should treat leaners as their own children. Once again, To the Mpianzi’s Family. May you be comforted. Issued by: Ms Thandi Nontenja UDEMWO Secretary General
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