B-BBEE: ANC Media Statement: A poor attempt at defending their last bastion.

by Gerhard Papenfus

The media statement by the ANC regarding B-BBEE’s centrality and critical nature reads like satire, or even mockery. It is a badly camouflaged attempt to convince the ANC-faithful that B-BBEE is alive and well, knowing full well that this is not the case.

It is evident, now more than ever, that race-based transformation as a policy “weapon”, is the sword the ANC will not lay down. As from their own statement, B-BBEE remains “a key policy instrument of the State”. The problem is what this “policy instrument” is used  (or abused) for.

Although the ANC claims that the purpose of B-BBEE is to “broaden economic participation”, “build an inclusive economy” and “redress historic injustices” – every South African knows that B-BBEE has been abused by a very small group of politically connected cadres and tenderpreneurs for ridiculous self-enrichment, to the absolute detriment of the Act’s intended beneficiaries.

To outright lie and say that B-BBEE is a central pillar in achieving the goal of an economy that “works for all South Africans”, borders on delusion.

The fact that the B-BBEE Act went through all parliamentary procedures, public consultations and presidential assent, does not automatically make it good policy or legislation. On the contrary, a law that is racially discriminatory, implemented and abused with malice, strewn with corruption and has destructive consequences, is a bad law.

B-BBEE has not achieved the goal of inclusivity. It has neither grown the economy nor led to any sustainable development - it has merely ensured the transformation of the racial composition of centres of control and influence, and placed financial control in the hands of a selected few.

B-BBEE’s stated goal was the inclusion of people who, prior to our democracy, were excluded from free and full participation in the South African economy. However, all that was achieved was the forced sacrifice of ownership and management to ANC cadres, thereby widening the unequal wealth distribution and income disparity. If this were Government’s only goal with B-BBEE - mission accomplished. However, the South African citizenry would appreciate Government at least being honest about it.

Statements alleging that B-BBEE continues “ensuring that the previously disadvantaged and discriminated South Africans, especially women, youth and persons with disabilities are meaningfully included in the mainstream economy”, are false and deceitful.

If B-BBEE is not prejudicial and is indeed the constitutional and moral imperative Government proclaims it to be – show us the proof. Show us how B-BBEE included women, youth and the disabled in the economy. Show us how youth unemployment declined because of B-BBEE. Show us the equality and fairness that have been created and embedded in the South African economy. Show us the growth. They can’t.

The ANC can also never admit that B-BBEE is a failure, as this would transform the sword they have been wielding into one they have to fall on.  

We can show Government the results of B-BBEE with cold, hard facts:

• the spoils of B-BBEE have been circulated among the same 100 politically connected cadres and tenderpreneurs, whilst millions live in abject poverty;

• SOEs have all but been destroyed, infrastructure is crumbling, and service delivery is atrocious;

• the income differentials and inequality among the South African populous are now larger than ever;

• unemployment and youth unemployment are at record highs;

• Government projects (hospitals, schools, ports, railways, roads etc.) are disastrous due to inflated prices and ineptitude;

• even the bravest investors have been scared away, and major economic players are exiting our country;

• the list is endless…

The ANC may stomp on the DA’s alternative proposal to B-BBEE by stifling it during so-called democratic procedure and killing it in parliament – but it can no longer deny that B-BBEE is all the ANC has left. The ANC is dying, and South Africans are moving towards shutting down its racially transformation-driven life support.

Gerhard Papenfus is the Chief Executive of the National Employers' Association of South Africa (NEASA). 

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