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05 Mar, 2020
Bantu Holomisa on Socio-Economic Transformation and Inclusive Growth
Speech by Bantu Holomisa, MP and UDM President on The Big Political Corner – Socio-Economic Transformation and Inclusive Growth at the Black Business Council Annual Policy Summit at Gallagher Estate in Midrand Let me start off by saying thank you to the Black Business Council for hosting this summit and complimenting it for having a good spread of contributors to the “big debate”, which is our economy. 1. Introduction Ladies and gentlemen, truth be told, during the struggle period the arts and law faculties of our universities were flooded by students from our disadvantaged communities. This happened because the focus at the time was to train scholars who were focussed on the liberation of our people. This was the right thing to do at that time. Unfortunately, while those classes were full, those in the economic sciences were bare. I witnessed this in 1979 when I enrolled for just such courses at the Umtata branch of the University of Fort Hare, where Professor Wiseman Nkuhlu, South Africa’s first black chartered accountant, lectured us. Hindsight being 20/20; looking at the success of, for example, Gloria Serobe who was my classmate and our highly successful businesswoman who obtained her BCom degree at the then University of Transkei during those years, we would have been speaking a totally different language today if there had been greater focus on economic sciences. This was part of the reason that I in 1998 partnered with Mr Matt Matthyser in a project called P-m=g2, where we developed supplementary study guides, providing high quality education in the subjects of English, physics, math and accounting. The aim was to give an edge to formerly disadvantaged students entering tertiary education, and for those who did not have the means to proceed, to have a proper grasp of the basics that would enable them to run their own businesses and their own private finances. Matt and I met with Ignatius Sehoole and Chantel Mulder of the South African Institute of Chartered Accountants (SAICA). We also lobbied various state departments and those in the corporate sector. Our efforts culminated in a programme, which is today called, Thuthuka and is run by SAICA. The aim having been to produce more black chartered accountants. Some of you might be aware that this project was launched in 2001 by Nelson Mandela in Umtata, and today I am proud that thousands of students have successfully graduated through the efforts of this programme, with many more to follow. Today Ignatius is the CEO of KPMG and we wish him well in turning that organisation around. I give this background, because once we attained political freedom in 1994, it was clear that our important institutions, government and the private sector would require trained and qualified professionals to run their business. The take-away from me making the point of an effective education system is that the successes of programmes like Thuthuka must be replicated en masse in, for example, the fields of agro-processing, steel and other manufacturing industries and tourism. It is not only important to create jobs, but also to send a skilled and qualified work force to fill those jobs. Not this mediocrity we have been subjected to. 2. A high-level snapshot of what we are facing Regarding the achievement of socio-economic transformation and inclusive growth, the United Democratic Movement (UDM) is of the view that government must do more, especially to address the backlogs and imbalances of the past. This would include the issues of education, land, economy and integrating the infrastructure of South Africa. Not only do we have to contend with the legacy of the past, but compounding our problems is a new triple crisis, which is: first, a fiscal crisis; second, an energy crisis; and third, the climate crisis that affects everyone, everywhere around the world. While the climate crisis is a global phenomenon, in which the developing world is a victim of the choices made by the Western powers of the industrial revolution and what followed it, the first two are own goals. The fiscal crisis and the energy crisis are clear failures of governance. On a side note and talking about a global phenomenon, the jury is still out on how great the effects of the Corona Virus will be on our economy in the end. That said, to position ourselves for the future, we urgently must fix the fiscal and energy problems over which we have control. For the economy to grow, we need a reliable supply of energy. If the government finds that it cannot maintain the social security safety needs, that it has created since 1994, and which the Constitution requires, then we will be in real trouble in terms of socio-economic risks and public order unrest. At some point, we need to take a serious look at our population growth, and the impact it has on our economy and the need to ensure a certain level of economic growth that keeps pace. This debate must take into consideration the burden on our limited resources and the pace of infrastructure development required. This dynamic should be considered in tandem with bulging immigration. Disrespect for the rule of law, as exhibited by our executive over the years, as well as institutionalised corruption have a direct bearing on South Africa’s downgrading on international ratings, which in turn negatively impacts investor confidence. Nobody doubts that over the last 25 years we have been consumers only. We need to find the ingredients to bake a bigger economic cake so that everyone not only gets a fair share, but that they also contribute to an inclusive, healthy, stable and growing economy. Also, in the past, companies like Anglo and other big conglomerates sustained government; albeit the Apartheid government. Too late did we realise that their campaigns for changes in foreign exchange policies would culminate in their listing outside South Africa. Thus, they sent the message that it is not good to invest here, and they also ended up spiting the new democratic government. Our focus from now on must be on how do we empower our own people to bake this larger economic cake I have mentioned. 3. A historical perspective on socio-economic transformation We must also look at which useful lessons history can teach us. A case in point of the “government must do more”-principle I mentioned earlier, is the international precedent of the European Recovery Programme of 1948, better known as the “Marshall Plan”. Closer to home, the Afrikaner government was deliberate in using state resources to successfully address Afrikaner poverty after the Anglo-Boer War. Some might consider state intervention as a taboo, but there is a lesson to be drawn from this part of the Afrikaner’s history i.e. how they purposefully managed to pull themselves up by their own socks and actively did something about their problems. 4. Policy certainty as a steppingstone for socio-economic growth The other important way in which we can position ourselves for the future is to be more decisive about where in our economy we want to welcome new private sector investment. Also, we cannot get away from the fact that policy uncertainty has for far too long caused South Africa much economic damage and has, in essence, halted socio-economic transformation and inclusive growth. First we had the Reconstruction and Development Programme (RDP), then the Growth, Employment and Redistribution framework (GEAR), then we switched to the Accelerated and Shared Growth Initiative for South Africa (AsgiSA), followed by the New Growth Path (NGP), then the National Development Plan 2030 and most recently, Radical Economic Transformation. This chopping and changing erodes investor confidence and drives out entrepreneurship. To compound matters, the tri-partite alliance’s differing stances on the economy further confuses policies. We urgently need to align policies with the needs of investors, and we need to provide clear policy certainty above all else. 5. Economic Indaba Regarding our macro-economic policy, after 25 years, there is still no consensus (not even within the tri-partite alliance) on how South Africa must transform its economy in a manner that creates wealth and improves the fortunes of the disadvantaged majority. This is indicative that something drastic must happen, and it must happen soon. Although we do not out of hand discard the current administration’s economic summits, the UDM strongly believes that a similar exercise as the Codesa talks needs to take place, but this time in the form of an Economic Indaba. Piecemeal conferences and summits will not do the job; it needs a concerted effort with all stakeholders gathering under one roof to hammer out South Africa’s economic policy. This Economic Indaba should emerge with consensus after which its decisions should directly go to parliament for ratification and implementation In this concerted manner, we are more likely to achieve policy certainty that will in turn ensure socio-economic transformation and inclusive growth in the near future. This proposed Economic Indaba is our best chance to find the right socio-economic solutions that will benefit all South Africans. I thank you.
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26 Feb, 2020
Beastly behaviour at higher learning institutions
The United Democratic Movement Women’s Organisation (UDEMWO) is extremely shocked at the beastly behaviour of students at the University of Fort Hare. Hardly a month has passed since Yonela Boli was allegedly slain by his girlfriend at this very same institution, and it has come to UDEMWO’s attention that Olwethu Tshefu was the key witness to the murder of Yonela Boli. He was also allegedly killed, over the weekend, by his girlfriend. What is surprising is that, according to reports (Daily Dispatch), these two victims were friends. In a country that is fighting gender-based violence, one might believe that the tables have been turned; it is now females against males. What has our nation become? It is clear that our society is sick. We have been made to understand that, in most cases, these young students are killing each other over petty things under the influence of alcohol. So much has happened since the beginning of this year, so many lives have been lost, yet one life lost, is one too many. Parents send their children to universities to be educated and not to be killed. There is very little done by university managements and the Department of Higher Education to curb the scourge. South African citizens have had enough of talk shows and lip service by President Cyril Ramaphosa. It is clear that the President and his government have no solution to this predicament, hence UDEMWO calls for an imbizo of all stakeholders to find a solution. We cannot have this untenable situation to continue at our institutions of higher learning. UDEMWO would like to express its heartfelt condolences to the family of Olwethu Tshefu, May their precious son’s soul rest in eternal peace. Issued by: Ms Thandi Nontenja UDEMWO Secretary General
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20 Feb, 2020
Violent protests at universities: why is Dr Nzimande quiet?
The United Democratic Movement (UDM) is concerned that the Minister of Higher Education, Science and Technology is quite reticent when the country needs his attention the most. Since the beginning of the academic year, there has been unrest in a number of South African universities like the University of KwaZulu-Natal, the Central University of Technology in the Free State and others. These crises have been met with Dr Blade Nzimande’s deafening silence. The nationwide outcry of unhappy students, as some who qualify for National Student Financial Aid Scheme (NSFAS) support are denied their benefits, is disconcerting. This whilst Dr Nzimande has made a promise that students from disadvantaged backgrounds, and those who are from families that earn a gross income of up to R350,000 annually, would automatically be accepted for NSFAS support. What is currently taking place is different from what the minister said three weeks ago at the Council for Scientific and Industrial Research where he addressed political parties. Who is in-charge of this higher education portfolio? Why are the vice-chancellors of these universities using different approaches with regards to NSFAS? All and sundry have seen the videos circulating on social media with extremely disturbing scenes of buildings being burnt down and attacks on campus security personnel. The UDM deplores this totally wrong and unacceptable behaviour. What the perpetrators of this violence don’t seem to realise is that rehabilitation will take some years, and that this will negatively affect the future of our youth. The UDM calls on Minister Nzimande to speedily attend to the outcries of the students; these are our future leaders and they deserve better than a passive, seemingly don’t care minister. – end — Issued by: Mr Bongani Msomi UDM Secretary General
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20 Feb, 2020
Bantu Holomisa on South Africa today and how best to position ourselves for the future
Let me start off by saying a heartfelt “thank you” to the South African Ubuntu Foundation for giving me this opportunity to chat with you today. Ladies and gentlemen, South Africa faces a triple crisis. Not the conventional one of unemployment, poverty and inequality, though those underlying socio-economic conditions remain, scarring our land, and casting a long shadow over the post-1994 South Africa. No, a new triple crisis: first, a fiscal crisis; second, an energy crisis; and third, the climate crisis that affects everyone, everywhere around the world. While the climate crisis is a global phenomenon, in which the developing world is a victim of the choices made by the Western powers of the industrial revolution and what followed it, the first two are own goals. The fiscal crisis and the energy crisis are failures of governance. To position ourselves for the future, we first must fix these two problems. For the economy to grow, we need a reliable supply of energy. For the investors to invest, we need a reliable supply of energy. And to avoid a downgrade to full junk status, we need to stabilize the fiscus. In turn, that means addressing the size of the public sector wage bill. All eyes will be on Tito Mboweni next week when he delivers his budget speech. Will he be able to show sufficient progress since the mini-budget last October. I very much doubt it. The danger of the downgrade, is that it puts further pressure on the fiscus and then on the social wage. If the government finds that it cannot maintain the social security safety need that it has created since 1994, and which the Constitution requires, then we will be in real trouble in terms of socio-economic risks and public order unrest. But we are not there yet. And we must not be too pessimistic. This is a resilient country, as we have shown many times. Most recently, we showed it in our determination to defend the freedoms and rights enshrined in the Constitution. A rogue president was held to account and ultimately ousted from power. Our rule of law held the line; our judges proved their independence; and many of our institutions either resisted state capture or slowly being rebuilt. Although I credit our President with having made steady progress in his reform programme, I worry about the urgency and boldness of his decision-making. I am concerned that he does not understand the full gravity of the situation. Even more worryingly, I am worried that he is too concerned about appeasing his political enemies within the ruling party. That is a waste of time and energy. The Zuma cabal, the Fightback Faction – call them what you like – are a bunch of scoundrels. Their strategy is a scorched earth strategy. The worst things are, the worse it is for the president, and the better it is for them. They believe that they can defend their interests and avoid prosecution and jail. They must be proved wrong. Hence, although the link with the economy is vague and indirect, I realise that in order to position ourselves for the future, we need to show to ourselves and to the world that we are capable of bringing to account those who were responsible for state capture. And we must not make the mistake, state capture did not start in Zuma’s era, it was there long before that. Just look at the Arms Deal and Sarafina II scandals and Chancellor House in particular which was a vehicle to loot state resources with impunity. They must pay the price for their vandalism and their selfish disregard for public integrity. The other important way in which we can position ourselves for the future is to be more decisive about where in our economy we want to welcome in new private sector investment. It is clear now that the government has run out of ideas and run out of runway – certainly in terms of SAA, if you will forgive the pun – in terms of the contribution it can make to public investment and job creation. If anything, the state needs to make some tough decisions to prevent massive job losses and cut costs, because of the fiscal crisis. While the state has a developmental role to play, it also needs to reignite economic growth of new private investment. This is no time, then, for holding onto sacred ideological cows. We need to be pragmatic. We cannot deny the fact that the state has a critical role play in redressing the backlogs and imbalances of the past. There is once more a great opportunity to find common cause between the state, the people and the private sector. We need to align policies with the needs of investors, and we need to provide clear policy certainty above all else. The tensions at NEDLAC, between labour and big business, and the mistrust investors have around government’s connection with labour needs to be addressed. This could be attended to by including other social partners. Here again, there are concerns about the willingness and ability of the President and his cabinet to offer the certainty that is required. Too often they appear not to be singing from the same hymn sheet. The notes jar; there is a discordant sound when, for example, Minister of Minerals and Energy Gwede Mantashe, speaks on the subject of opening up the energy sector to private investment. Why is this? Is it really ideological wariness or is the hesitation due to something else? Is he trying, for example, to protect coal interests? Or his apparent reserve about renewable energy more to do with a concern that foreign renewable energy companies will prove to be resistant to attempts to create rent-seeking opportunities for the tender-preneur community? We need the president to lead. His job is to ensure that his cabinet is aligned and speaks with one voice, unequivocally obedient to the strategies he outlined in SONA last week. To do so, he will have to abandon the pretence that the ANC can be re-united. That ship has sailed – long ago. It is divided and factionalised. He is on a complete hiding to nothing if he invests too much political capital in trying to keep everyone inside the ANC happy. So, he must decide where his real priority lies. There can be only one choice: the country. But I wonder whether he is capable of making that tough choice. Lastly, we must play to our strengths. This is a country that is rich in talent, has plentiful local capital markets and well-run companies as well as some well-run public institutions. As I have said, it has an independent judicial branch of government. And it has an effective, free media and a robust civil society. We must work together to harness these talents. We can no longer expect government to do everything, still less the ANC. We must take our futures into our own hands, forging partnerships across sectors and society and the economy. We must do what we do best as South Africans – be creative and resilient, and thereby avoid the precipice. The responsibility for those of us who are elected to serve in parliament is to look beyond the walls of parliament and to help cultivate those creative partnerships. As we build our ability to build and sustain coalitions in party politics, so too we must build and sustain extra parliamentary coalitions – between political leaders, community leaders, NGOs and thinktanks, and, yes, business. That is the sort of social compact that we need. If we do so well, then we will position ourselves effectively. We will be able to articulate exactly what it is that we need our government to do, and then the government will have no choice but to respond positively. This requires a sense of strategic leadership and vision. Those of us with power and privilege and wealth will need to continue to make sacrifices in service of this goal. Because we must remember that the great majority of South Africans struggle to live a decent life and to feed their children. We owe to them to create the conditions, the partnerships, the policies, and the good governance needed to grow the economy and create employment. Nobody doubts that over the last 25 years we have been consumers, we need to find the ingredients to bake a bigger economic cake so that everyone not only gets a fair share, but that they also contribute to a healthy, stable and growing economy. I thank you.
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12 Feb, 2020
SONA 2020 debate: response by Bantu Holomisa in the National Assembly
Mr President Honourable Speaker Honourable Members Since the change of government in 1994 there have been improvements. Yet, judging by the uneasiness of the people who have been suffering due to poor service delivery, it is difficult to explain to them, when the same leadership which liberated them yesterday are now embroiled in the looting of state resources. It simply means that the noble intentions which were pronounced in 1994 have been hijacked by thugs. Indeed, many people who had hoped that when you, Mr President, ascended to office with your pronunciations that by today there must have been action taken against those who stole the money. Money that could have been used to alleviate the backlogs and imbalances of the past. It is equally worrying that some of those who have been implicated are seemingly regrouping to continue with their looting sprees. It is for that reason that there must be a plan and strategy to improve on the performance of the National Prosecuting Authority (NPA). Take all these cases, such as the massive Gupta looting, VBS robbing of the poor, municipalities’ monies, Bosasa and the other revelations of the commissions of inquiry… we can’t allow this nonsense to continue! Either the NPA’s leadership must resign, or be fired, and we must employ competent people, or we must request secondment of experts from countries we have bilateral agreements with. Honourable members, the state of our environment needs attention in particular pollution and the lack of enforcement regarding waste management. Mr President, we propose that all vehicle owners or drivers be made liable for people throwing garbage out of car, taxi and truck windows. Shop owners should stop dumping packaging material on our sidewalks. In addition, we propose that one of our public holidays be set aside to launch a cleaning initiative so that our streets and living areas can be made litter free and thus raising the quality of life of our people. Cellphone companies should be lobbied to assist with a communication campaign as they have access to all our phones. It is time that we inculcate a culture of ownership. We must clean up the mess we made; nobody is going to do it for us. Lastly, climate change is a reality of which South Africans should be keenly aware. General desertification, dams that are dried up and soil erosion are at the order of the day. Silting of dams and riverbeds are problematic. Job opportunities can be created if government could launch a programme to plant grass and put other erosion combatting measures in place to preserve the soil in rural areas and to clear silted-up dams and rivers to restore their capacity. I thank you.
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10 Feb, 2020
Dissent voices on SOEs by top leadership is disheartening!
The United Democratic Movement takes note on contradicting statements issued over the weekend by the President of the ruling party and his National Person on the ailing state-owned entity the South African airways. The President, Mr Cyril Ramaphosa insisted that SAA will not be sold or shut down and within hours the chairperson, Mr Gwede Mantashe told the nation that this entity should be shut down if it does not make profit. The ANC recently had a lekgotla, and they had promised the nation that the issue at SAA was going to be discussed, but from these statements one may conclude that there was no discussion, if there was, no agreement was reached as to how this important would be made viable. If it is like this at SAA, what about the other SOE’s? Seemingly the ruling party does not have a strategy to make these SOE’s to operate as companies that sustain themselves. The ANC is in the about what needs to be done to save these SOEs. This might be the reason why the rescuing practitioners of SAA are now dictating terms on how the entity should operate hence certain domestic and international routes had to be abruptly stopped without the approval government. This has turned South Africa a banana republic. The State Owned Enterprises need a decisive leadership and intervention not what it is being heard, that is, dissenting voices of the senior leaders of the ruling party and the government. The majority if not all SOEs are currently in the Intensive-care unit (ICU), they are not making any profit. These SOEs are supposed to be contributing to the GDP of the country yet they are a liability. This is a biggest shame. How long will the hard-earned money of taxpayer’s money keep saving these SOEs? The problem with ruling party is for it to admit that cadre deployment is killing these SOEs and it is afraid to take drastic actions as it does not want to lose support from their comrades who are somehow being compensated for failing to make it to parliament or provincial legislatures. This must stop if South Africa is be made a winning nation. Issued by: Bongani Msomi UDM Secretary General
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05 Feb, 2020
UDM Youth Vanguard is disgusted by bully tendencies of the DA
For far too long, the Democratic Alliance (DA) has used every nefarious political tactic to tarnish the image and reputation of the of the United Democratic Movement (UDM) and Comrade Mongameli Bobani with baseless accusations. The smear campaign against Mr Bobani started during the days of Athol Trollip and Mmusi Maimane without evidence. They continued to label Bobani as corrupt thereby indirectly saying the UDM is corrupt tarnishing its name without a just cause. DA claimed to have instructed Price Water Coopers to investigate Bobani and there were no findings that implicated Bobani that suggest he had been involved in any corrupt activities. Still under the little stunt of the leadership by John Steenhuisen the attack against Bobani continues. The UDMYV is not going to sit back and watch its mother-body being dragged to the mud by anyone in the DA. The DA must provide the UDM with proof of whatever wrongdoing by Bobani so that it can act. Mr Bobani has been subjected to unfair practices by the Hawks when they raided his home and his office during his tenure as the Executive Mayor of Nelson Mandela Bay Metro. The hawks could not find anything committed by Bobani which against the law of the country. This must stop and time is now! John Steenhuisen, Mr Judas as affectionately called by his previous leader Mmusi Maimane must focus on leading the DA which is marred with racial tensions. He must show young South Africans that the DA is indeed an agent of transformation and not a racist organisation. Issued by: Yongama Zigebe UDMYV Gauteng Secretary
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31 Jan, 2020
Postponement of lower data prices is a justice denied
The UDM Youth Vanguard is in awe at the extension of the deadline that was initially two months for network operators to reduce data costs. If these network operators were interested in reducing data, they could have done so within the timeframe the Competition Commission had set. Calls for reduction of data prices were not a new thing when the Commission tabled their report in December,2019. This clarion call has been around for years. In the previous State of the Nation Address, President Cyril Ramaphosa promised that data will fall, yet it remained relatively high as network operators did not take him seriously. The Competition Commission should have strengthened their hand instead of eating from the palm of the corporations and enforced them to adhere to the deadlines, failing to do so harsh punishments should be instituted instead the Commission has extended the deadline by a month. This is unacceptable as South Africans have waited for far too long. Actions should have been taken long-time ago to enforce these so-called giants network operators to drop these high data prices. The UDMYV is not happy at all. This is yet another failed promise to desperate people who rely on usage of data. Affordable data prices are not negotiable but a must! Issued by: Masonwabe Nqawe UDM YOUTH VANGUARD WESTERN CAPE
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