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13 February 2024 Photo SUPPLIED
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.

President Cyril Ramaphosa’s 2024 State of the Nation Address (SONA) has, as expected, drawn mixed reactions. The speech placed strong emphasis on addressing significant sources of discontent and division within the country, such as gender-based violence, unemployment, crime, load shedding, poor service delivery, and corruption. The speech underscored the President’s commitment to economic reform and job creation through initiatives such as the Presidential Youth Employment Intervention. 

At a time when South Africa is on the eve of national and provincial elections, where the youth hold immense potential to shape the outcome – if the registrations can translate into voting – it is interesting to note that the President’s approach of using the analogy of young ‘Tintswalo’ has drawn considerable debate.

‘Tintswalo’ and President Ramaphosa’s soft-line approach

While the President’s approach in utilising the positive life trajectory of Tintswalo – a young girl born in democratic South Africa – may have been intended to inspire hope and showcase progress for many since the end of apartheid, critics argue that it overlooks the persistent challenges that many young citizens still face. But is focusing on a single success story providing a misleading impression of the overall state of the nation and downplaying the continuous challenges South Africa faces?

Public opinion can vary, and different individuals and groups may have different perspectives on the nation’s current state. For many, the ANC-led government has created a nurturing environment through various policy interventions, and a system of social transfers geared towards sustainable and productive investment in citizens. This view was supported by the World Bank, which described the country’s policies and programmes for the poor as ‘effective, well-targeted, and providing sizeable benefits to the poorest households.’ 

Indeed, the post-apartheid environment and individual agency enabled today’s Tintswalos to prosper. These deliberate programmes and policy interventions provide an environment that fosters educational attainment, instils values, and encourages personal growth. However, it is important to acknowledge that not all young people have equal access to resources and opportunities.

President Ramaphosa did not appear harsh, but rather dignified in using political persuasion to convince the world of the government’s resolve to strive for equitable access to education, health care, and social services to ensure that all young people have a fair chance to prosper. 

And, of course, relying on political persuasion is not hard. 

The President, an advocate of the soft line approach, has perfected the art of smothering citizens with embraces – smothering that has lately been peppered with the phrase: ‘ba rata kapa ha ba rate (whether they like it or not), we have done well.’ He did not appear harsh each time he uttered this phrase, but dignified in the conviction of the achievements of the government he has been leading since February 2018. However, the effect of the Tintswalo analogy – accentuating the state’s weaknesses rather than obscuring them – is the opposite of what was intended.

The bottom line is that the number of unemployed, politically disengaged, and disgruntled youth is growing, as is their ferocity.

Shrinking fiscal resources and the central role of institutions

As South Africa achieves a significant 30-year milestone of political freedom, the protection of individual freedoms and the establishment of institutions to safeguard democratic values stand as noteworthy achievements. However, amid the celebrations, shrinking fiscal resources and the overarching impact of increasingly reduced budget cuts for the higher education sector will hamper the progress of a new generation of Tintswalos. It has repeatedly been proven that education is an essential pillar of a country’s economy.

In Why nations fail: The origins of power, prosperity and poverty, Acemoglu and Robinson underscore the significance of inclusive economic institutions. They argue that countries differ in their economic success because of their different institutions, the rules influencing how the economy works, and the incentives that motivate people. 

Consider for a moment the difference between teenagers in North and South Korea.

According to these scholars, those in the North grow up in poverty and know that they will not become prosperous due to the propaganda they are fed in school. Those in the South obtain a good education, with incentives encouraging entrepreneurial initiative and creativity.

In South Africa, one of the most disheartening anomalies of our nation’s state is the blatant failure to ensure consequential management for the recurring unauthorised, irregular, fruitless, and wasteful expenditure by municipalities and state institutions reported by the Auditor-General. This is indicative of political power that is exercised arbitrarily.

In steering its future development, a South Africa that embraces diversity, prioritises economic recovery, invests in education, and leverages the incentives provided by state institutions will ensure equitable access to services and opportunities and allow all young people a fair chance to prosper, regardless of political affiliation.

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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