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15 February 2022 | Story Prof Sethulego Matebesi
Prof Sethulego Matebesi
Prof Sethulego Matebesi, University of the Free State

Long before delivering his fifth State of the Nation Address (Sona), concerns reverberated in the political and social corridors surrounding President Cyril Ramaphosa, urging him to make conclusive statements, to have the heads roll of those implicated in corruption, and to report on achievements and challenges. However, the somewhat overwhelming dismissive responses from prominent opposition party leaders may seem as if they are not eager to engage with the Sona constructively. Thus, it seems that no matter how well the Sona is delivered, there will always be those who dismiss it as a trivialisation of South Africa’s challenges.

There were times during one or two of the ‘family meetings’ – live broadcasts by the President, addressing the nation on the status of the COVID-19 pandemic and the regulations to be amended – that it was vividly evident that Ramaphosa was taking strain. However, all this was gone when President Ramaphosa delivered the Sona like a true statesman, without any visible signs of the ambush he was facing from within and outside his own political party. In fact, the need to be bold and resolute about the government’s stability has never been stronger after recent attacks on several national key points across the country.

Assumed power of reports from commissions, advisory panels, and advisory councils

In a recent Reading Group Session of the Department of Sociology, we discussed the assumed power of documents when conducting research. The emphasis was on the need to avoid an over-zealous reduction of a research question to documentary evidence without considering the document’s terms (or context). Similarly, it is interesting to note that since 2018, President Ramaphosa has established 24 advisory panels, advisory councils, task committees, and commissions. While it may seem rather obvious that some of these panels have been designated by statute for a specific purpose, the assumed powers of the reports produced are sometimes the most difficult to unravel.

One such instance is the report of the Zondo Commission of Inquiry into State Capture, which was viewed as a magic wand that would root out corruption and strengthen the rule of law. In the face of the complex set of interlocking challenges that are hampering structural growth and change in South Africa, reports from committees may provide an in-depth examination of issues. However, there are at least two problems with policy makers who invariably think that these reports, including national addresses such as Sona, are solutions to the country’s myriad challenges.

First, a recent publication of Transparency International highlights how some governments are trivialising the results of its Corruption Perceptions Index (CPI). The trivialisation mainly happens when leaders who have come into office with a strong anti-corruption narrative, fail to make inroads against this scourge. For example, in South Africa, pronouncements on corruption – one of the leading causes of the state’s failure to deliver on promises – have been so subtle that those involved in corrupt practices may not even notice the seriousness of their acts.

The other problem is the reluctance to change non-performing accounting systems that are susceptible to abuse. South Africa has been trying to fix the puzzle of corruption long before the arrival of the Zondo Commission. Therefore, acknowledging that public institutions and state-owned enterprises (SOEs) have been infiltrated by a criminal network intent on looting public money is merely a starting point but not a satisfactory explanation in its own right. Moreover, it does not account for the government’s glaring failure to act upon the Auditor-General’s annual findings on irregular and unaccounted expenditure. It would have been more desirable for the government to insist on better financial accountability than its over-reliance on commissions or advisory panels.

As the nation waits with bated breath to see how corruption is tackled ‘once and for all’, as the President announced, a further qualification needs to be made regarding the proposed disposal of the government’s non-strategic SOEs. Estimates of global trends in privatisation indicate that privatisation activities are on the rise. In South Africa, there is a great deal of evidence that a handful of politically connected individuals often benefit from the privatisation of government assets. This raises important questions that are beyond the scope of this contribution, for example, how SOEs will be further weakened to hasten the process of privatisation.

Victorious we can emerge, but only if …

President Ramaphosa made a bold statement through his promise and commitment to revitalise the country’s weak economy, deal with Eskom’s unreliable electrical supply, and bring about changes to security agencies, among others. The extent, urgency, and sincerity with which the government will implement these and many other commitments, will determine whether we will ‘emerge victorious’, as Ramaphosa announced.

Mr President, we know the road ahead will not be easy. But in many ways, there has been an improvement. One possible solution to continue this trajectory of accountability and improved service delivery is to take full advantage of the benefits of the digital age. A digitisation drive underscored by a consequence management approach may assist in implementing the Sona promises and commitments in a more efficient, flexible, and sustainable manner. In this way, South Africa will begin to ‘walk the talk’ against poverty, unemployment, and inequality.


News Archive

Census 2011 overshadowed by vuvuzela announcements
2012-11-20

Mike Schüssler, economist
Photo: Hannes Pieterse
15 November 2012

Census 2011 contains good statistics but these are overshadowed by vuvuzela announcements and a selective approach, economist Mike Schüssler said at a presentation at the UFS.

“Why highlight one inequality and not another success factor? Is Government that negative about itself?” Mr Schüssler, owner of Economist.co.za, asked.

“Why is all the good news such as home ownership, water, lights, cars, cellphones, etc. put on the back burner? For example, we have more rooms than people in our primary residence. Data shows that a third of Africans have a second home. Why are some statistics that are racially based not made available, e.g. orphans? So are “bad” statistics not always presented?”

He highlighted statistics that did not get the necessary attention in the media. One such statistic is that black South Africans earn 46% of all income compared to 39% of whites. The census also showed that black South Africans fully own nearly ten times the amount of houses that whites do. Another statistic is that black South Africans are the only population group to have a younger median age. “This is against worldwide trends and in all likelihood has to do with AIDS. It is killing black South Africans more than other race groups.”

Mr Schüssler also gave insight into education. He said education does count when earnings are taken into account. “I could easily say that the average degree earns nearly five times more than a matric and the average matric earns twice the pay of a grade 11.”

He also mentioned that people lie in surveys. On the expenditure side he said, “People apparently do not admit that they gamble or drink or smoke when asked. They also do not eat out but when looking at industry and sector sales, this is exposed and the CPI is, for example, reweighted. They forget their food expenditure and brag about their cars. They seemingly spend massively on houses but little on maintenance. They spend more than they earn.”

“On income, the lie is that people forget or do not know the difference between gross and net salaries. People forget garnishee orders, loan repayments and certainly do not have an idea what companies pay on their behalf to pensions and medical aid. People want to keep getting social grants so they are more motivated to forget income. People are scared of taxes too so they lower income when asked. They spend more than they earn in many categories.”

On household assets Mr Schüssler said South Africans are asset rich but income poor. Over 8,3 million black African families stay in brick or concrete houses out of a total of 11,2 million total. About 4,9 million black families own their own home fully while only 502 000 whites do (fully paid off or nearly ten times more black families own their own homes fully). Just over 880 000 black South Africans are paying off their homes while 518 000 white families are.

Other interesting statistics are that 13,2 million people work, 22,5 million have bank accounts, 19,6 million have credit records. Thirty percent of households have cars, 90% of households have cellphones and 80% of households have TVs.
 

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