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13 January 2022 | Story Opinion article by Prof Sethulego Matebesi | Photo Sonia Small
Prof Sethulego Matebesi
Prof Sethulego Matebesi is an Associate Professor and Head of the Department of Sociology at the University of the Free State (UFS).

Opinion article by Prof Sethulego Matebesi, Associate Professor and Head of the Department of Sociology, University of the Free State

 

Commissions of inquiry have been a feature of political life in South Africa since 1994. However, the Seriti and Zondo commissions arguably represent the most explicit evidence of the scourge of corruption in democratic South Africa.

The Seriti inquiry into the arms deal, which cost R137 million, was handed over to former President Jacob Zuma in 2016. This commission found no evidence of the 1999 arms deal corruption. However, Justice Raymond Zondo would hand over one of his three reports to President Cyril Ramaphosa in early January six years later.

Despite their similarities – their role in investigating allegations of widespread corruption and the stern rebuke that the commission heads received from certain public sections – there are several fundamental differences between them, with one predominating. The most fundamental difference between them is that the Seriti Commission’s chairperson and commissioner were referred to the Judicial Service Commission on charges of gross misconduct. A full panel of the Gauteng High Court found that the Seriti Commission mysteriously omitted crucial facts before concluding that there was no proof of corruption. Contrarily, evidence presented to the Zondo Commission has already had dire consequences for several individuals, politicians, and state-owned and private companies in South Africa and abroad. While it is still early days, and perhaps unfair to make this comparison between the two commissions, the Zondo Commission has undoubtedly removed some dark stains from the judiciary that do not augur well for democracy.

 

Erosion of ethical conduct

President Ramaphosa’s renewal project, underscored by a commitment to fighting corruption and strengthening governance, has gained traction over the past two years. Nevertheless, as the Zondo report makes abundantly clear, South Africa is struggling to respond effectively to the complexities of corruption and money laundering. As a nation still being forged, too many men and women entrusted to lead this glorious nation have abandoned the cardinal rule that ethical conduct was central to leadership. Instead, they have knowingly become corrupt conduits through their collaboration and conniving to collapse democratic institutions and practices.

No competent government will fold its hands and watch as its citizens’ livelihoods are destroyed by criminal elements within and outside its ranks, as reported by the Zondo Commission. However, we need to credit President Ramaphosa – with all his leadership flaws – for his continued bold statement to implement the commission’s recommendations without fear or favour. We may want to dismiss this boldness as another political gimmick. In any event, I believe that civil society organisations and liberal democratic institutions are converging, as they did in the past, to challenge attempts to circumvent the recommendations of the Zondo Commission.

 

A trial for President Ramaphosa

Several incidences after the release of the Zondo Commission report indicate what we can expect when the final report is released. Of note were some ANC members’ statements that seemed to differ from President Ramaphosa about the need to support the implementation of the commission’s recommendations. Somehow, Ramaphosa will be on trial – fairly or unfairly – during the year. He will have to overcome some challenges, including the dismal performance of the ANC during the 2021 local government elections and his stance on corruption. Yet, thus far, he has managed to shrug off threats from increasingly aggressive and confrontational elements within the ANC.

The ANC will hold its elective conference at the end of the year. Besides the multipronged, political disinformation strategies that often precede such conferences, some defenders of democracy implicated in the Zondo report may join beleaguered activists to crush opponents and settle scores. Others, however, may take the findings against them on review.

Surmounting these threats from within the ANC will depend on the extent to which the President and his supporters are willing to risk his aspiration for a second term instead of serving the long-term interests of South African citizens.

 

Beyond the politics

The Zondo Commission’s report will remain largely fruitless unless it goes hand in hand with political will and oversight to act on recommendations with the prima facie of wrongdoing and criminality. Without the latter, we need to ask serious questions about Parliament, and the Executive’s ability to solve political matters often offloaded onto commissions of inquiry. For example, while I understand the need for an independent anti-corruption agency and other measures to fight craft, we conveniently ignore how the Auditor-General’s reports detailing rampant corruption and blatant criminality (not irregular expenditure as the elite want us to believe) are ignored year after year.

What difference will these measures bring when you still have leaders and officials with malign influence on procurement procedures?

The bickering against the Zondo report and President Ramaphosa will grow louder and dominate the South African political landscape over the next few months. We should consider the advice of former Deputy Chief Justice Dikgang Moseneke, who once noted that integrity in public spaces is indispensable.

News Archive

Producers to save thousands with routine marketing strategies, says UFS researcher
2014-09-01

 

Photo: en.wikipedia.org

Using derivative markets as a marketing strategy can be complicated for farmers. The producers tend to use high risk strategies which include the selling of the crop on the cash market after harvest; whilst the high market risks require innovative strategies including the use of futures and options as traded on the South African Futures Exchange (SAFEX).

Using these innovative strategies are mostly due to a lack of interest and knowledge of the market. The purpose of the research conducted by Dr Dirk Strydom and Manfred Venter from the Department of Agricultural Economics at the University of the Free State (UFS) is to examine whether the adoption of a basic routine strategy is better than adopting no strategy at all.

The research illustrates that by using a Stochastic Efficiency with Respect to a Function (SERF) and Cumulative Distribution Function (CDF) that the use of five basic routine marketing strategies can be more rewarding. These basic strategies are:
• Put (plant time)
• Twelve-segment pricing
• Three-segment pricing
• Put (pollination)(Critical Moment in production/marketing process), and
• Pricing during pollination phase.

These strategies can be adopted by farmers without an in-depth understanding of the market and market-signals. Farmers can save as much as R1.6 million per year on a 2000ha farm with an average yield.

The results obtained from the research illustrate that each strategy is different for each crop. Very important is that the hedging strategies are better than no hedging strategy at all.

This research can also be applicable to the procurement side of the supply chain.

Maize milling firms use complex procurement strategies to procure their raw materials, or sometimes no strategy at all. In this research, basic routine price hedging strategies were analysed as part of the procurement of white maize over a ten-year period ranging from 2002–2012. Part of the pricing strategies used to procure white maize over the period of ten years were a call and min/max strategy. These strategies were compared to the baseline spot market. The data was obtained from the Johannesburg Stock Exchange’s Agricultural Products Division better known as SAFEX.

The results obtained from the research prove that by using basic routine price-hedging strategies to procure white maize, it is more beneficial to do so than by procuring from the spot market (a difference of more than R100 mil).

Thus, it can be concluded that it is not always necessary to use a complex method of sourcing white maize through SAFEX, to be efficient. By implementing a basic routine price hedging strategy year on year it can be better than procuring from the spot market.

Understanding the Maize Maze by Dr Dirk Strydom and Manfred Venter (pdf) - The Dairy Mail


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