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SONA 2021 – A dream deferred yet again

15 February 2021 | Story Prof Sethulego Matebesi | Photo Sonia Small

Dr Sethulego Matebesi — Prof Sethulego Matebesi is a senior lecturer and Academic Head of the Department of Sociology at the University of the Free State.

Opinion article by Prof Sethulego Matebesi, Senior Lecturer and Academic Head of the Department of Sociology in the Faculty of The Humanities, University of the Free State.

In Langston Hughes’ poem, Harlem, the opening line poses a simple yet profound question: ‘What happens to a dream deferred?’ Hughes then arrives at a provocative conclusion: ‘Maybe it just sags like a heavy load. Or does it explode?’

In sharp contrast, President Cyril Ramaphosa’s 2021 State of the Nation address expectedly began by sharing a story of hope, resilience, and inspiration. In a slight departure from his usual presentation style, powerful rhetorical and inspiring themes were a notable feature of the President’s address. By highlighting South Africa’s COVID-19 vaccine rollout programme, boosting the unemployment rate, economic recovery, and fighting corruption as the government’s key priorities, the President wove together the challenges and opportunities we face as a nation.

Pitfalls of the mass vaccination drive

Thus far, the South African government has led a commendable intervention strategy against the coronavirus. While there seems to be a concrete vision of how to implement the mass vaccination drive, the realisation is there is overwhelming evidence of how various challenges have compromised immunisation programmes in the country. Adopting the current Expanded Programme on Immunisation (EPI) strategies to champion the COVID-19 mass vaccination drive will be insufficient in the context of porous borders, overwhelmed primary healthcare workers, and intense and significant epidemiological changes of the virus. The last challenge is not only akin to SA. Therefore, it is imperative that a better understanding of population mobility and more targeted and evidence-informed strategies will be crucial in mounting a sufficient mass vaccination drive.

Unemployment – a mixed bag of fortunes

Long before COVID-19 ravaged the South African labour market, unemployment has been one of the country’s key challenges. In a country where half of the youth are unemployed, it was expected that SONA 2021 would provide a glimmer hope to subvert the poor socio-economic outcomes of unemployment. But the dream for many unemployed South Africans remains out of reach as short-term initiatives such as the extension of the Special COVID-19 Grant of R350 and the Presidential Employment Stimulus will not be able to cushion the ravages of long-term unemployment many South Africans have to endure. Despite the delays and teething implementation challenges of these employment relief packages, they will again face a breaking point when these interventions end.

The COVID-19 pandemic has undoubtedly led to an unprecedented number of job losses. This situation will continue due to deindustrialisation, depressing investment and the complacency of South African institutions. For example, the President mentioned several relief measures, including the Public Employment Programme, which created 3.2 million work opportunities. However, there remain serious doubts about planning around youth employment.

The President stated that the government reached 1,000 businesses by International Youth Day in August 2020, is a far cry from the 15,000 start-ups planned to be supported by 2020. Another complicating factor is that institutions like the National Youth Development Agency (NYDA), which has to play a leading role in assisting young citizens to become successful entrepreneurs, is highly politicised and embedded in the intra-political battles of the ruling party. The fact that there is still no board for the NYDA is indicative of the challenges of fighting youth unemployment. Effective managerial accountability and control of financial resources will go a long way in assisting agencies such as the NYDA in meeting their mandates.

Economic recovery and corruption

The President’s speech highlighted a myriad of plans to restructure, rebuild and revive the South African economy. Comparatively, the President's fifth SONA had more detail about milestones reached and practical strategies to implement plans. Expectedly, he also lamented the impact of state capture and the COVID-19 pandemic.

South Africans are now looking to finance minister, Tito Mboweni’s upcoming national Budget Review for details on how the government will fund the President's priorities. However, attempts to grow an ailing economy are impeded by the continuing energy supply crisis, the lack of scope to utilise digital technologies to shape economic opportunities, and rampant corruption.

The measures against corruption mentioned in the State of the Nation are welcomed. The same cannot be said about the political commitment to deal with the challenge. But what difference will the launch of a National Anti-Corruption Advisory Council make if the government fails to act decisively on the Auditor-General’s reports which highlight an average of R50billion in irregular expenditure annually? Pronouncements by the President about fighting corruption have become a norm. There are pockets of success in this regard. Yet the scourge of corruption and greed in government institutions continues unabatedly.

Global experience has shown that robust, transparent and accountable public institutions can be catalytic in securing and sustaining good governance. Without good governance, our youth will continue to stand on street corners looking for jobs, many will continue to go to bed on empty stomachs, our lights will remain off, and we will continue to be imprisoned in our homes due to the high crime rate in the country.

Only time will tell what will happen to dreams deferred yet again.

News Archive

The failure of the law

2004-06-04

Written by Lacea Loader

- Call for the protection of consumers’ and tax payers rights against corporate companies

An expert in commercial law has called for reforms to the Companies Act to protect the rights of consumers and investors.

“Consumers and tax payers are lulled into thinking the law protects them when it definitely does not,” said Prof Dines Gihwala this week during his inaugural lecture at the University of the Free State’s (UFS).

Prof Gihwala, vice-chairperson of the UFS Council, was inaugurated as extraordinary professor in commercial law at the UFS’s Faculty of Law.

He said that consumers, tax payers and shareholders think they can look to the law for an effective curb on the enormous power for ill that big business wields.

“Once the public is involved, the activities of big business must be controlled and regulated. It is the responsibility of the law to oversee and supervise such control and regulation,” said Prof Gihwala.

He said that, when undesirable consequences occur despite laws enacted specifically to prevent such results, it must be fair to suggest that the law has failed.

“The actual perpetrators of the undesirable behaviour seldom pay for it in any sense, not even when criminal conduct is involved. If directors of companies are criminally charged and convicted, the penalty is invariably a fine imposed on the company. So, ironically, it is the money of tax payers that is spent on investigating criminal conduct, formulating charges and ultimately prosecuting the culprits involved in corporate malpractice,” said Prof Gihwala.

According to Prof Gihwala the law continuously fails to hold companies meaningfully accountable to good and honest business values.

“Insider trading is a crime and, although legislation was introduced in 1998 to curb it, not a single successful criminal prosecution has taken place. While the law appears to be offering the public protection against unacceptable business behaviour, it does no such thing – the law cannot act as a deterrent if it is inadequate or not being enforced,” he said.

The government believed it was important to facilitate access to the country’s economic resources by those who had been denied it in the past. The Broad Based Economic Empowerment Act of 2003 (BBEE), is legislation to do just that. “We should be asking ourselves whether it is really possible for an individual, handicapped by the inequities of the past, to compete in the real business world even though the BBEE Act is now part of the law?,” said Prof Gihwala.

Prof Gihwala said that judges prefer to follow precedent instead of taking bold initiative. “Following precedent is safe at a personal level. To do so will elicit no outcry of disapproval and one’s professional reputation is protected. The law needs to evolve and it is the responsibility of the judiciary to see that it happens in an orderly fashion. Courts often take the easy way out, and when the opportunity to be bold and creative presents itself, it is ignored,” he said.

“Perhaps we are expecting too much from the courts. If changes are to be made to the level of protection to the investing public by the law, Parliament must play its proper role. It is desirable for Parliament to be proactive. Those tasked with the responsibility of rewriting our Companies Act should be bold and imaginative. They should remove once and for all those parts of our common law which frustrate the ideals of our Constitution, and in particular those which conflict with the principles of the BBEE Act,” said Prof Gihwala.

According to Prof Gihwala, the following reforms are necessary:

• establishing a unit that is part of the office of the Registrar of Companies to bolster a whole inspectorate in regard to companies’ affairs;
• companies who are liable to pay a fine or fines, should have the right to take action to recover that fine from those responsible for the conduct;
• and serious transgression of the law should allow for imprisonment only – there should be no room for the payment of fines.

Prof Gihwala ended the lecture by saying: “If the opportunity to re-work the Companies Act is not grabbed with both hands, we will witness yet another failure in the law. Even more people will come to believe that the law is stupid and that it has made fools of them. And that would be the worst possible news in our developing democracy, where we are struggling to ensure that the Rule of Law prevails and that every one of us has respect for the law”.

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