Dailymaverick logo

DM168

LETTER FROM THE DM168 EDITOR

Economic stagnation looms: can Ramaphosa's government turn the tide amidst scandals?

Does our President not know that his pandering to the whims of his dysfunctional party and its errant members, is contributing to the very economic stagnation and low growth that palace coups are made of?
Economic stagnation looms: can Ramaphosa's government turn the tide amidst scandals? A joint Daily Maverick and News24 investigation revealed how Justice Minister Thembi Simelane took a loan of more than half a million rand from a company that brokered unlawful investments of R349-million into VBS Mutual Bank. (Photo: Brenton Geach / Gallo Images)

Dear DM168 reader,

This week Daily Maverick’s Pauli van Wyk and News24’s Kyle Cowan published a series of articles showing how Justice Minister Thembi Simelane lived way beyond her means when, as mayor of Polokwane in 2018, her luxury expenses outstripped her income by 569%, funding her lifestyle from business accounts with inexplicable  sources of income.

Before publishing their third article, in which the writers explain that Simelane’s tenure as mayor of Polokwane appeared to be marred by her receiving and spending cash she now declines to explain, President Cyril Ramaphosa announced that he was reshuffling his Cabinet. Not firing Simelane, just moving her to another compartment on the government gravy train as minister of human settlements.

The thing that bugs me most about this saga is why on earth Ramaphosa appointed Simelane to the job of justice minister in the first place. According to the parliamentary website, Simelane holds a Higher Education Diploma, a Bachelor of Arts (Honours) degree, and a BPhil (Political Studies), which she obtained from the University of Stellenbosch.

She also completed the Advanced Programme in Management at Wits Business School. Nowhere in her CV is there anything about the law, but I can let that pass because most ministers have little experience or expertise in their portfolios. Nowhere in DA leader and Minister of Agriculture John Steenhuisen’s CV is there anything to do with farming, for example.

What bugs me is that while she was meant to be the mayor of Polokwane, Simelane was borrowing  funds for a coffee shop from VBS Mutual Bank and living the lush life with inflows from all over the place into her bank accounts. And not exactly doing her job. Proof? Just ask Auditor-General Tsakani Maluleke, who has revealed in report after report that the Polokwane municipality had qualified audit outcomes for three financial years (2018 to 2021), when Simelane was mayor.

Did Ramaphosa not read the Auditor-General’s reports? Did he not read Pauli and Kyle’s lifestyle audit of Simelane? Is Simelane still a minister in the government of national unity (GNU) because she is a political ally of the President in his toxic party, where knives are being sharpened in dark corridors?

Does our President not know that his pandering to the whims of his dysfunctional party and its errant members like Simelane, is contributing to the very economic stagnation and low growth that palace coups are made of?

TimesLIVE columnist Justice Malala sounded the alarm over this perilous state of interregnum that Ramaphosa and the GNU have us stuck in. Citing the shocking International Monetary Fund prediction that “growth is projected to reach 1.8% by the end of the decade, as investment recovers gradually on the back of ongoing electricity and logistics reform efforts”, Malala rightly insists that our political leaders need to come up with a plan for economic growth and job creation and implement it fast and soon.

He writes: “These numbers are tipping us closer and closer to a point where voters will pick any populist who comes along promising jobs to run this country. Or, let me put it differently: a victim like Zuma, or someone similar, has a chance to go out there and tell impoverished young people that he will solve their problems.

“Failure to provide a coherent and effective economic turnaround plan – which I still have not seen from the GNU – is tantamount to giving this country to the populist/kleptocratic nexus of the MK party and the EFF.”

Scary, right? It’s time for the motley crew in the GNU to screw up their courage and show us what they can do to turn the economy around so that real jobs in impactful numbers can be created.

If the President really means business, really means renewal of our economy and country, he will have to start by removing the cancerous ANC rot in every corner of the Cabinet and at every level of government: local, provincial, national and in state-owned enterprises.

And dare I suggest that ANC officials who do not live within their means and have led municipalities with successive qualified audits should not be rewarded with any government or ministerial post?

Share your views with me at heather@dailymaverick.co.za

Yours in defence of truth,

Heather

PS: Rebecca Davis, Nonkululeko Njilo and Chris Makhaye reflect on Jacob Zuma and his MK party’s year of living dangerously in our DM168 lead story. The two-week countdown for our DM168 bumper edition starts tomorrow and our iconic edition will hit the stores, pavements, mailboxes and lawns on Saturday, 21 December. The DM168 Bumper Edition reflects on the year that was and takes a look at what lies ahead for us in 2025. It also features the popular People of the Year awards as voted for by you, our readers, so if you haven’t yet had your say, please VOTE HERE now.

Comments (10)

Dave Martin Dec 7, 2024, 10:43 AM

South Africa is a developing country. By developing country standards, the Simelane scandal is a non-event. Like it or not, our developing country peers have much, much worse scandals. And yet their economies grow much faster. Our low growth rate has nothing to do with Simelane. Dig deeper.

Dieter Patrovski Dec 7, 2024, 05:14 PM

Its corruption Dave. It repels investment.

Dieter Patrovski Dec 7, 2024, 05:14 PM

Its corruption Dave. It repels investment.

Dave Martin Dec 8, 2024, 11:19 AM

That's actually a false statement. Much more corrupt countries than South Africa have much higher growth rates. As I said, that's the kind of superficial analysis that provides no insight. Dig deeper.

virginia crawford Dec 8, 2024, 01:14 PM

Could you name these countries please? Us, Nigeria and Egypt are the corruption front runners in Africa.

Dave Martin Dec 8, 2024, 01:42 PM

Vietnam, India, Indonesia, Philippines, Bangladesh and many others all have worse scores on the international Corruption Perception Index and yet score 5% or higher GDP growth rates annually.

Dave Martin Dec 8, 2024, 02:40 PM

Vietnam 5.5%, India 6.0%, Kazakhstan 4.0%, Indonesia 5.0%, Philippines 6.2%, Thailand 3.8%, Bangladesh 6.5%, Pakistan 3.5%, Cambodia 5.0%, Laos 4.5%, Myanmar 3.0%, Uzbekistan 5.0%, Mongolia 4.2%, Nepal 4.5%, Sri Lanka 5.8%, Papua New Guinea 4.0%, Tajikistan 6.0%, Kyrgyzstan 4.3%, Bhutan 4.8%

Dave Martin Dec 8, 2024, 02:44 PM

See my above comment for another 19 countries with worse corruption but high GDP growth (given in %). We can keep telling ourselves that our growth problem is caused by corruption, but it doesn't withstand international scrutiny. Hence I say experts must dig deeper and stop superficial analysis.

Johan Buys Dec 8, 2024, 05:49 PM

Yes and no. There are equally corrupt developing nations but their officials still seem to deliver essential services that economic growth depends on. Here, the mess in just Eskom and Transnet handicaps the economy. Compare electricity cost and logistics here vs say Indonesia.

Dave Martin Dec 8, 2024, 09:32 PM

Many of us (myself included) thought that loadshedding alone was reducing GDP by 1.5% and yet we ended loadshedding and no growth. But your point is that it isn't corruption but rather incompetence. Those are different things. This article is saying that growth will come from ending corruption.

D'Esprit Dan Dec 9, 2024, 08:06 AM

Agreed, to an extent: but we have mixed the two to such as degree, that even if we appoint competent people, corruption will still hobble our growth. The Nats were corrupt as anything, but they kept it within reason, so that they maintained a capable state - not the ANC.

Dave Martin Dec 10, 2024, 07:45 AM

Sorry to be pedantic but if the problem is incompetence, and I've shown that our level of corruption is lower than dozens of high growth countries, then it doesn't make sense to say that competent people will be derailed by corruption. Why would that not be the case in the other corrupt countries?

Trenton Carr Dec 7, 2024, 01:20 PM

Can he turn the tide? Easy answer, no. Ramaspineless cannot do anything at all it seems.

gilstra@outlook.com Dec 8, 2024, 09:12 AM

Precisely. He's so busy checking his rear-view mirror that he can't keep his eyes on the road ahead. Our country continues to be shafted by the cANCer, but now they can shif the blame onto the other parties involved.

Dave Martin Dec 10, 2024, 07:53 AM

So fixing Eskom, PRASA, SARS, SAA, Transnet, Denel, etc and evicting Magashule, Zuma, Gigaba, Van Rooyen, Dhlamini, etc from leadership was achieved through spineless leadership? In 4 years' time when the country is facing a Zuma presidency you are going to regret demonising Ramaphosa.

Mike Pragmatist Dec 7, 2024, 05:48 PM

Betteridge's Law of Headlines tells us that if a headline poses a question, the answer is "No".

Errol.price Dec 7, 2024, 10:25 PM

Dear Ms Robertson, from the time that the ANC decided to spend millions , if not billions on useless arms so that bigwigs could rake off the top instead of infrastructure and Mandela and the rest of the leadership were either complicit or shut their eyes to it S. A's fate was sealed,

Mike Lawrie Dec 8, 2024, 06:57 AM

The DA is in a position to put their foot down and insist that CR clean up the cabinet and have those highly suspect MPs ejected. CR and any replacement can be thrown out by a vote of no confidence which would be easy to get MK&EFF support. Why dont they do so?

Michele Rivarola Dec 8, 2024, 09:04 AM

And the solution? Beware of willing for solutions which might be worse than the problems you are attempting to resolve

Noelsoyizwaphi@gmail.com Dec 8, 2024, 02:56 PM

"The DA is in a position to put their foot down and insist that CR clean up the cabinet and have those highly suspect MPs ejected". Really? Have you heard how deafening DA's silence is lately? Gravey train, blue lights and other solitary emoluments, are blinding.

D'Esprit Dan Dec 8, 2024, 09:56 AM

Lack of growth? Gwede Mantashe. Into his 8th year of destroying mining and its multipliers. Unions: holding SA to ransom over a few hundred jobs at Durban port that are destroying thousands more along value chains. The list goes on, the common theme being the ANC alliance.

Colin Braude Dec 8, 2024, 10:20 AM

Naturally, DM can't miss a dig at the DA. Des van Rooyen, with 2 Masters, in Finance and Public Development & Management, was more formally qualified than Pravin Gordhan's B Pharm. But! The real issue is that, since the Programme of Action in 1949, the ANC has fostered lawlessness

The Realist Dec 8, 2024, 01:25 PM

And look what the communist and unionist Gordahn did to the country!

Noelsoyizwaphi@gmail.com Dec 8, 2024, 11:36 AM

Rubbish and very few level-headed readers will agree with this nonsense. Indonesian economy grows at 4.99% year-on-year, yet they even went as far as making it a crime to criticize their politicians, as corruption is rife in that country.

virginia crawford Dec 8, 2024, 01:17 PM

Rife but not completely debilitating like here.

Noelsoyizwaphi@gmail.com Dec 8, 2024, 02:34 PM

South Africa-Indonesia, both ranked at 41 & 42, what would significantly seperate them is how much hate you place on either one of them, really. However, one is achieved 5% annual growth that, consistently, while corruption is awash, debilitating, rife, abundant, toxic, etc, etc

virginia crawford Dec 8, 2024, 05:57 PM

That's very interesting- what do you think the issue is? PS. I don't hate S.A. or South Africans ( ok, a few)

mikegrace@polka.co.za Dec 8, 2024, 06:35 PM

The main problem we have is there is no decent law & order. If we had effective law & order every crooked politician, crime syndicate member and just every criminal would be behind bars.

Noelsoyizwaphi@gmail.com Dec 8, 2024, 06:40 PM

No hate, good. Indonesia is 50yrs older than SA. A former "colony" of Japan, who left it to run its affairs. It has 284m people. Biggest language spoken is Indonasian and has only 5 other languages, but much smaller. I'm sure you can see differences with SA. One is that oppressors never left

virginia crawford Dec 8, 2024, 06:01 PM

It's true, other countries are corrupt but function and grow. Is it a million Indonesians taking a $1 bribe and here it's 1 person taking $1million? Is it the violence and distrust? I can't figure it out. Any interesting thoughts? Please share.

Noelsoyizwaphi@gmail.com Dec 8, 2024, 08:58 PM

Employing illegals, lead to locals' unemployed, lead to lower wages, lower income, lower consumption, lower GDP growth. In Indonesia, illegals are subjected to fine of 500 million (IDRs) and or face five years of imprisonment. In SA employers prefer illegals to the locals. How will we grow?

Seventhousandrpm Dec 9, 2024, 12:47 AM

Its the scale of incompetance and really bad decesion making in every single department. Then add indemic corruption. The ineffectual Police. BEE being enforced by the Stazi. Dunning kruger syndrome is rife. There is no plan. Murder rate 75 a goddamn day. Why Would anybody invest.