Latest News Archive

Please select Category, Year, and then Month to display items
Previous Archive
22 December 2023 | Story Dr Harlan Cloete | Photo Supplied
Dr Harlan Cloete
Dr Harlan Cloete is a research fellow in the Department of Public Administration and Management at the University of the Free State.


Opinion article by Dr Harlan Cloete, Department of Public Administration and Management, University of the Free State (UFS)


This week my Great Governance ZA podcast reached the 100-episode milestone. About a year ago I interviewed Prof Jaap de Visser on the platform and he argued that coalition governments are a natural consequence of our South African electoral system and that we must get used to this reality. On the 5 December we marked the passing of Nelson Mandela who led the first coalition government in South Africa, called the government of national unity. That coalition did not last beyond two years with the National Party walking out in 1996 because the ANC would not agree to extend the government of national unity beyond 1999, as well as a failure to reach consensus on key economic choices and policies. And so since 1996 the ANC has the sole mandate to ensure economic justice.

Today there is no greater failure than the failure of our economic policies. The fact the World Bank declared South Africa the most unequal country in the world is a direct consequence of our economic policy choices over a period of 30 years. We are faced with deep-rooted structural inequality, persistent generational poverty and rising youth unemployment. These problems will persist due to deteriorating state capacity and inappropriate policy management. How long will state indifference last? No one knows. The National Development Plan (NDP) review concludes that instead of a capable state, we have an increasingly corrupt state. And let me remind you that this corruption did not start in 1994, it is so deeply entrenched in our DNA – both the private and public sectors. This country was built on this political economic collusion resulting in centuries of economic and political injustice.

Fought for freedom and all we got was democracy

The NDP states that instead of a seamless planning system, we have a disjointed planning system that is poorly implemented and misaligned to the strategic goals of the NDP. Instead of a more inclusive and equitable economy, we have economic policies that do not seem to be achieving the transformation that is required. Social cohesion has fallen off the government priority list and is articulated superficially (Stronger Together – four rugby world cups and more divided than ever). South Africans experience some of the highest levels of violent interpersonal crime globally, especially violence against women.

And so we continue to be brilliant at identifying what is wrong but weak in implementing what must be done. I conclude that the constitution is not working, as summed up by a colleague: we fought for freedom and all we got was democracy. And so there is this deep sense of cynicism with our current politicians and the political system that continues to condemn people to misery and making them slaves to new forms of slavery, alcohol abuse being but one. South Africa has some of the highest rates of youth binge-drinking. The reality is that this democracy is working for the elites not the poor. The statistics show that we have about 62 million people, of which 45 million are eligible to vote, with close to 27 million people on the voters’ roll. In the 2019 election only 19 million people voted (42%) and in our COVID election in 2021 only 12 million voted (27%).

The reality is that we have more than 100 registered parties and more parties joining the ballot paper, the latest is the Activist and Citizens Forum calling for Dr Allan Boesak to lead. This leads me to conclude that people either form political parties because they see politics as entry into the middle class (given our high unemployment rate) and or they are genuinely disillusioned with the status quo and feel this to be the only way to express their dissatisfaction.

But there is opportunity in the crises. We now know what good leadership looks like, it is not what people say, it’s what they do. So what does a desired future look like? The NDP concludes that leadership and active citizenry will get us out of this deep hole. The reality is that the bar for political leadership is so low. Ours is a system of representative and participatory democracy. There is a total disconnect between the politicians and the people – social distance. The goodwill of the people is simply not matched by administrative and political will. That government is not prepared to meet people halfway, instead the system is designed to make you dependent (grants) in a disempowerment model. South African must decide. Are we active or passive citizens? In the broad sense (business, academia and civil society formations). Active citizens are involved, helping to shape society as expressed in a grassroots governance course spearheaded by colleague Ina Gouws at the University of the Free State (UFS). This requires hard work and deep commitment to build institutions. This is not elitist. In this, new knowledge and models are developed that serve to liberate people. Active citizenship irritates and keeps producing evidence demanding excellence and redistribution of wealth.

Citizen Coalition

If we think coalition government is the answer, we are making a big mistake. Such a government maybe even be more complex given the different egos demanding to be fed.  Rather a Citizen Coalition (social solidarity) is needed, where citizens lead and government follows. Unless we make that transition in our heads, we will forever be at the mercy of politicians trapped in a system that rewards only them. We cannot talk of a coalition government if we do not talk about citizen coalition – where we put your purpose together. Affluent well-resourced schools will continue to flourish unless we collaborate and share wealth. Such a citizen coalition is built on five principles viz namely, leadership behaviours that are based not on rent-seeking, economic inclusion, equal access to health care (dignity), equal access to education (a means to an end) and accountability systems.

The October 2022 report from Good Governance Africa suggests that excellence in municipal performance to a lesser extent is the consequence of which political party is in charge and more linked with governance, population, and provincial dynamics. However, what the study also showed is when you have ethical and competent leadership steering the ship to ensure that municipalities are properly governed in terms of Administration, Planning and Monitoring, and Service Delivery then there is a greater chance of success.

In October I was invited by the municipal council of the Theewaterskloof municipality to facilitate a three-day strategic conversation using my Governance 5iQ model as point of departure. This model asks five questions. Why we do what we do (vision)? How is it being done (mission)? How will we know at any given time we are on track (M&E)? If we are not on track, what are we doing about it (consequence management)? And finally, how we lead and learn (knowledge management). I believe the Governance 5iQ could be applied in conversation around the viability of a Citizen Coaltion.

The desired state is inclusive coalition governance not coalition government that is achieved through building coalition governance competence on all levels of society. The cornerstone of this coalition governance is a partnership between civil society, the private sector, government, and academia, as concluded in the NDP review. Where we co-create a desired future. And this must be youth led. It can be done, we owe it to the youth who rightfully question the motives of those who are trying to fix problems they themselves created over the past three decades. This is hard work. But there is no better time than the present.

Dr Harlan Cloete is a research fellow at the UFS. His main research interest is exploring evidence-based HRD governance systems in the public sector, with a keen interest in local governance. He is the founder of the Great Governance ZA Podcast https://anchor.fm/harlan-ca-cloete

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”.

 

 

We use cookies to make interactions with our websites and services easy and meaningful. To better understand how they are used, read more about the UFS cookie policy. By continuing to use this site you are giving us your consent to do this.

Accept