DOCUMENTS

SONA: Radical Economic Transformation a license to loot - Geordin Hill-Lewis

DA MP says BEE an ANC tool for mass empowerment deals for the politically connected few (15 Feb 2017)

Transcript of the speech by DA Shadow Minister of Trade and Industry Geordin Hill-Lewis MP in the debate on the President’s State of the Nation Address, Parliament, 15 February 2017

Mr G G HILL-LEWIS: Hon House Chairperson, Mr President, last  week I had the pleasure of meeting Mr Sibusiso Maphatiane, an inspiring black entrepreneur in Ekurhuleni who has built his business from nothing but who stood in front of me shaking with emotion and fury telling me about how his business is on the brink of collapse.

He has applied for permission to lay off dozens of his workers because the signed contracts which he fairly won and the orders that he has from Transnet have never been honoured. He told of the pain of having to explain face to face to those workers why he could not afford to keep them on.

His office is decorated with South African flags – a real patriot and a champion that we should be nurturing and supporting. In his own words, Mr President, he cut right to the heart of why your notion of radical economic transformation using the might of the state is nothing but a sham.

Listen to what he said: “The government is supposed to be supporting an entrepreneur like me ... But the government is destroying me.” In this one crucial respect, the ANC is carrying on a long and damaging tradition in South Africa. It is governing on behalf of some of the people and excluding others.

While the ANC tries to tell us that it is governing on behalf of the poor, the reality is that the ANC governs on behalf of the party — not the people, and not the poor. This is the story of the commitment to radical economic transformation. It is the work of a con artist, a sleight of hand designed to deceive the public into thinking that you care about them. But the truth is that radical economic transformation is nothing but a code word for radical corruption. [Applause.]

The ANC has long abandoned the idea of real broad-based empowerment ... [Interjections.]

Ms M C C PILANE-MAJAKE: On a point of order. [Interjections.]

Mr G G HILL-LEWIS: ... if they ever believed in it at all.

The DEPUTY HOUSE CHAIRPERSON: Hon Hill-Lewis, can you take your seat, please. On what point are you rising, hon member?

Ms M C C PILANE-MAJAKE: Thank you, House Chairperson. I am rising in accordance with Rule 12 of the Joint Rules of Parliament that has to do with discipline. The Rule reads as follows: “When the House sit jointly, the Assembly Rules ...

The DEPUTY HOUSE CHAIRPERSON:  When the House is ...

M C C PILANE-MAJAKE: When the House sit jointly, the Assembly Rules and the Council Rules on discipline remain applicable to the Council members. I am reading this jointly with Rule 14(j) and 85 of the National Assembly Rules that actually reads as follows: “No member may impute improper motives to any other member or cast personal reflections upon a member’s integrity or dignity or verbally abuse a member in any other way. A member who wishes to bring any improper or unethical conduct on the part of another member to the attention of the House may do so only by way of a separate substantive motion.

For the whole afternoon, we have actually been listening to aspersions that are cast on members of this House and members of the executive. And this is how the DA and other parties are actually grandstanding to try and leverage themselves politically, trying to convince South Africans otherwise about progress that has been made by the ANC. [Interjections.]

Setswana:

Re tswela pele. Le ka nna la re senya mabitso.

English:

The DEPUTY HOUSE CHAIRPERSON: Order, hon member. That was not a point of order. It was more of a point of debate. [Interjections.] Can you continue with the debate, hon member?

Mr G G HILL-LEWIS: The ANC has long abandoned the idea of real broad-based empowerment, if ever they believed in it at all. Empowerment – ANC style – is empowerment for billionaires and millionaires, and scraps for the rest. Under the banner of radical economic transformation, the President promised to use the power of the state to support black-owned businesses.

But, consider this, Eskom is used to funnel coal contracts to the Guptas and Zuma family members, even if it means the country must go without power. Radical land redistribution is code for giving farms to ANC Ministers and cronies, not for creating black agricultural entrepreneurs ...

Mr H P CHAUKE: Point of order. Point of order. Hon Chair?

The DEPUTY CHAIRPERSON OF THE NCOP: Hon Hill-Lewis, can you take your seat. Hon member?

Mr H P CHAUKE: The hon member disrespected the President, by the way. [Interjections.] he is supposed to address the president as His Excellency or President or Mr Zuma. He addressed him by his name directly and it is improper. So, he needs to address the President properly, please Chair. It is an appeal, we are making and we are not going to take thing of undermining the President any more. [Inaudible.] [Interjections.]

The DEPUTY CHAIRPERSON OF THE NCOP: No, no no. No, no, no. Can I rule on that. There is a ruling that has been made before. Hon members, we know that you may like or not like the President. If you don’t want to call him or refer to him as the President, at least call him Mr Zuma. That is a Standing Rule that was made previously. Can we please just ensure that we stick to that.

Mr G G HILL-LEWIS: Sir, if you refer to Hansard, I referred to Mr Zuma and Mr President. Black economic empowerment, BEE, is a tool for massive empowerment deals for a connected few, not for actually turning workers into part-owners of their businesses. The Mining Charter is not about improving the living and working conditions of mine workers, it is a way to force companies, like Goldfields has said publicly, to choose their “empowerment partner” from a predetermined list – including the Speaker of this House. Even when you can confront the private sector, you just won’t do it because there is a crony in every boardroom and a comrade in every deal. So you do not act to bring down data charges for the poor, to end banking rip-offs for people on social grants or help to break the cycle of debt that keeps so many people locked in a prison of stress and anxiety.

You do none of those things because in every facet of the economy, the ANC in business relies on the ANC in government to keep the dirty money flowing thick and fast. [Interjections.] And never mind the “dirty votes”, to quote hon Mokonyane ... [Interjections.]

The DEPUTY CHAIRPERSON OF THE NCOP: Hon member, can you take your seat. On what point are you rising, hon member?

Mr M A DIRKS: Hon Deputy Chair, I rise on Rule 14(l)(a). Hon Deputy Chair, the corruption issues that Mr Hill-Lewis is raising in the House are shocking.

The DEPUTY CHAIRPERSON OF THE NCOP: No, no, no. Hon members, I need to ... just hold it, hon member. I am trying to follow what the member is saying. [Interjections.] If you make noise, I won’t be able to make a proper ruling on the basis of what the member is raising. Can you allow me to gear the member, please.

Mr M A DIRKS: I am shocked by the corruption issues that Mr Hill-Lewis is raising in this House. Just last week, a member of Mr Maimane’s church once again found drugs in church ... [Interjections.] [Inaudible.] ... and $2 million was found in his church. [Interjections.]

The DEPUTY CHAIRPERSON OF THE NCOP: Hon members ... [Interjections.] No, no, no. Hon member, take your seat. Can I rule on that and my ruling is very simple. That is a statement and it is not a point of order. [Interjections.] Hon member, can you continue with the debate, please.

Mr G G HILL-LEWIS: Thank you, Deputy Chair.

This is the one thing that unites all of the candidates in the ANC’s current succession battle. Whether it’s Mr Ramaphosa you are supporting or Ms Mbete. They may not be speaking to one another now, but they have all shared in the empowerment feast and filled their pockets along the way.

No matter which one of them wins, the feast will continue. It’s just about who gets to sit at the top of the table. The ANC first, the people last. On 20 January, your government, Mr President, quietly published new procurement regulations which completely abandon all previous broad-based empowerment policy. Black economic empowerment should be used to broaden ownership, give workers a stake in their own companies and create training, employment and entrepreneurship opportunities for the lost generation.

But now, finally the fig leaf has fallen. Because according to these new regulations, no matter what other contribution companies have made in terms of their BEE scorecard, it’s all irrelevant.

All that counts is narrow ownership. All of the contributions to finding and mentoring young black entrepreneurs are gone! All of the work in helping young black entrepreneurs access supply chains is gone!

All of the contributions to education, to training their workers, to buying locally, to giving their workers a stake in the businesses are gone and gone and gone! All of that is irrelevant to this government. All that counts is making sure that the right people get all the tenders.

The only thing broad-based about it is the broad base of people that will pay for this organised theft through higher prices and harder living. And it’s easy to see where this comes from.

Jimmy Manyi has been calling for this for two years. Brian Molefe has already been doing this at Eskom, illegally – I would say, for over a year. And now, you have caved in and given the cronies what they’ve always wanted, a facade of legal legitimacy to their radical looting programme.

The ANC’s message to South Africans now is this: “You are less than us; get to the back of the line, we are still eating. And remember, you owe us forever!” The ANC is not on the side of the poor; it is not on the side of the people. It is the state against the nation, the ANC against the people.

By contrast, let me spell out exactly whose side the DA is for. [Interjections.] The DA is firmly on the side of all the people who have been forgotten, marginalised and left behind by the ANC. [Applause.] [Interjections.]

To these South Africans the DA says: “You are valuable, you are legitimate and you are equal. And you have much more right to opportunity and a stake in the future than these will ever give you. The DA is for you!” We are a party that fights for your interests, for the improvement of your lives, for new opportunities and for a better life. Not just for some of the people but for all the people. Wherever we govern, life gets better and better and better. Wherever we do not govern, corruption gets worse and unemployment grows.

The DEPUTY CHAIRPERSON OF THE NCOP: Hon member, can you take your seat. On what point are you rising, hno member?

Mr H P CHAUKE: The member again continues to refer to members here as “these members”. Not even members, he says “these”. [Interjections.] You can’t address hon members in that way, please. Just make sure that this member respects Members of Parliament. [Interjections.] It’s an appeal that we are making. Just respect us; we are honourable Members of Parliament. We are not “these”.

The DEPUTY CHAIRPERSON OF THE NCOP: Can we stick to that. I mean it’s just a point of respect to other members. Earlier on there was a ruling where members were referred to as “lot”. A ruling was made ... no, no, no, hon Steenhuisen, just hold it! Members were referred to as “lot” and a ruling was then made that members must be respected. All what I am saying is ... I didn’t hear that but if the member said it, then please, may we respect each other and refer to each other as hon members. That’s my appeal. Hon Steenhuisen?

The CHIEF WHIP OF THE OPPOSITION: Hon Deputy Chairperson, let me just say that we were referred to as “the lot” earlier by the hon Zulu and nobody asked her to retract it. [Interjections.] She said it at least three times but nobody asked her to withdraw it. These points of orders are really becoming quite pathetic.

The DEPUTY CHAIRPERSON OF THE NCOP: No, no, no. I don’t want to get into a dialogue. Hon members, order. I don’t want to get into a dialogue with the Chief Whip of the Opposition – the majority opposition.

I was in the House and was seated right there listening to hon Zulu when she was requested to withdraw. And she withdrew. I was sitting right there. She withdrew. So, please hon members, may we just look at each other and treat each other with the greatest respect. Can you continue, hon member.

Mr G G HILL-LEWIS: Deputy Chairperson, the DA is building a mighty movement of the excluded and the forgotten people. The time is coming for all of those who believe with us, to join with us so that together we can confront and tear down the wall that the ANC continues to build to divide us.

And we will take our values and our plan to rescue this lost generation into the thick of the fight for justice and opportunity for all. Thank you very much. [Applause.]

Source: Unrevised transcript, Hansard.