Two brothers accused of massive corruption, the Guptas, were arrested in the UAE. This has brought back the ethics of public office. It comes as President Ramaphosa demands better performance from Black executives, and office holders. Analysis by Mushtak Parker.
The issue of ethics in public office – corruption, abuse of power and failure to deliver – has been the sombre background noise in South Africa since the heady days of Nelson Mandela’s leadership. The arrest of two of the Gupta brothers, accused of ‘state capture’, in Dubai has brought the general issue of ethics into even sharper focus.
At the nexus of ‘state capture’ was former President Jacob Zuma and his family’s close relations with the Indian-born Atul, Rajesh and Ajay Gupta, who allegedly used their influence through bribing officials to rake in billions in state contracts and through sell-offs.
After an investigation by a judicial panel began in 2018 into their involvement with corruption, the brothers fled South Africa. Two of them were arrested by Interpol Red Notice. Justice R M Zondo presided over the Commission on State Capture. President Cyril Ramaphosa was promised a prompt response.
Atul Rajesh and Atul were arrested by the UAE police at the time of writing. Extradition talks had already begun but it was expected that it would take a long time.
Ramaphosa will be able to use the full report from the Zondo Commission and the arrest of the brothers to help him fight corruption and restore some integrity to South African politics.
This development comes at a time when the President and his Finance Minister Enoch Godongwana have been targeting Black management, professionals and businesses in a carrot and stick approach – decrying their failure to deliver on the one hand, and re-affirming the government’s commitment to Black Economic Empowerment (BEE) on the other hand.
Godongwana, an ANC guru, raised the stakes in May’s gala dinner. He challenged Black managers and professionals to get their act together.
“Government remains committed to the agenda of thorough-going transformation,” he pledged. “Through our policy on Affirmative Action, we have ensured that more and more Black professionals are able to enter the corporate world.”
Ramaphosa appointed a group of 14 experts from diverse backgrounds to the Broad-Based Black Economic Empowerment Advisory Council to assist the government in its intensified transformation.
Then Godongwana read the riot act; the ANC’s Ready to govern document on affirmative action, he reminded his audience, stresses the significance of meritocracy to advance transformation and not “giving positions to unqualified people simply on the grounds of race or gender”.
It also sets out to “reverse the imbalances of the past” and upskill and support those who “have been kept back by Apartheid education and sexist assumptions”, to enable them to catch up and compete on an equal footing, he said.
South African transformation is not only a political and economic imperative, but also a moral imperative. The Commission for Employment Equity presents a grim picture of the pace of South African economic transformation in its 2020-2021 report. The average progress of Black Africans to top management positions was around 15% between 2018-2020. It was 5.7% for the Coloured and Indian population in 2020. Nearly 65% of top management positions are held by the White population.
“So, what do we expect from Black professionals?” asked Godongwana. “They need to ask the critical question: ‘Why is it that Black managers tend to be associated with failure and incompetence?’ If you look at the state of local government, six out of every ten municipalities are in financial distress – their governance is weak, they lack professional and judicious management. These are mainly Black managers leading municipalities under Black political leadership. We must ask these difficult questions and not shy away from them.”
State capture ramifications
At a Black Business Council gala dinner in Johannesburg, the President conceded that in addition to “the legacy of our Apartheid past”, the effects of the pandemic, global economic shocks, the 21 July rioting, the recent floods in KwaZuluNatal and the Eastern Cape, state capture and government failures had contributed to setting back the transformation agenda.
“State capture,” lamented Ramaphosa, “has deeply damaged our economy, weakened our public institutions and destabilised our democracy. It has also hindered Black economic empowerment and the advancements of Black professionals.
“By far one of the greatest blows was the capture of key public institutions and state-owned enterprises by private interests. The state was steadily reduced in its capacity as billions were taken from it. Many of those complicit in these acts of corruption used the language and the instruments of Black economic empowerment as a cover for their crimes.”
However, the President and his Financial Minister discredit any link between Black economic empowerment as well as rampant corruption. They appeal to Black business executives and professionals to be more motivated by patriotism than self-enrichment, for the future and current generations.
In return, the government, they maintain, will undertake “the task of empowerment with greater intensity and purpose. We reject the argument that Black economic power has had a negative effect on the economy. Rather, slow progress in the pace of economic transformation is what is holding back our nation’s development. Black business in South Africa has a critical role in our economic reconstruction, recovery and in job creation.”
Shocking declines
Ramaphosa might have been equally open about the socio-economic structural changes required for transformation. ANC ideological differences have meant that successive Finance Ministers have not been able to address this issue effectively.
A disturbing decline in the quality and quantity of vocational and basic education is a concern. This will result in a decrease in the quality of Black managers and leaders. This affects all societal sectors. It can affect businesses and employment when local municipalities are dysfunctional.
“The poor quality of basic education limits the youth’s capacity to exploit further opportunities at post-secondary and tertiary levels. As a result, existing skill deficiencies and mismatches are likely to persist in the form of high unemployment, particularly in poor Black communities, and a scarcity of skilled workers,” observed the World Economic Forum’s 2021 Global Competitiveness Index.
Over its 28-year democratic history, South Africa saw a largely successful economic transformation and policy delivery during President Nelson Mandela’s two terms, with some extraordinary material improvements in living standards and in affordable housing, education, and electrification.
The number of Black college students doubled, as did the number of Black people with jobs. The number Black buyers of suburban properties rose to match the number of White purchasers. Between 1994 and 2007, economic growth averaged 5%. Between 1994 and 2007, the government debt levels were reduced by half and a surplus was achieved.
This bright start was quickly scuppered and, although there were more Black entrepreneurs and executives, the overall level of service delivery and efficiency fell dramatically. Corruption at all levels also reached epidemic proportions. The growth rate has slowed or remained static, and the confidence in the political system is at its lowest point.
It is clear that Ramaphosa and his Finance Minister see the problem as one of professional ethics – or the lack thereof – and have been trying to instil a sense of patriotic duty and pride over self-serving instincts as one path out of this moral morass.
Source: New African Magazine
