The SACP is outraged though not shocked at what clearly is a conflict of interest in the role of Ms Wendy Luhabe as chair of the Industrial Development Corporations and private companies in which she has shares. The fact that some of Ms Luhabe's companies, including herself, have benefitted from loans given by the IDC is a classic example of parasitic capitalism at its worst, something that the SACP has consistently been warning against - the use of state institutions for private and personal accumulation.
People who serve in public institutions must not behave like parasites on the resources that are supposed to benefit the ordinary workers and the poor of our country. The IDC is supposed to be driving industrial development that will create jobs, alleviate poverty and provide opportunities for sustainable livelihoods for the workers and the poor of our country. These Luhabe transactions are a further expression of the extent to which BEE has been captured by narrow parasitic elite, using the state for its own self-enrichment.
The SACP calls upon the relevant government department to undertake an urgent, transparent and thorough investigation into this matter.
However, this development raises broader questions about the role and composition of the boards of the many state owned enterprises. Just like we have pointed out with the SABC, these boards are made up of exclusively business people with no representation whatsoever from the trade union movement, active working class activities, developmental NGOs and other sectors of society who are more interested in development than self-enrichment.
The SACP calls upon the incoming administration after the 2009 election to undertake a comprehensive review of the criteria for the appointment of people serving on all boards of state owned enterprises and other public institutions, in line with our commitment to developing an industrial strategy as part of our developmental agenda.
We further note with concern that Cabinet has in fact recently appointed some board members into the IDC, including the extension of Luhabe's term as chair by one year, with scant regard to representation of workers and other sectors of society that are knowledgeable about the developmental needs of our people, including areas where the IDC can invest in a manner that brings improvement to the lives of the ordinary workers and the poor of our country.
We dismiss Luhabe's explanation that she recused herself during the award of the loans to companies in which she is a shareholder. This is absurd for a number of reasons. Firstly, she is no ordinary member of the board but its chairperson, thus her influence going far beyond whether she recused herself or not in particular meetings. Secondly, her knowledge of the inside operations of the IDC, including criteria for awarding loans, must surely advantage companies that she is associated with.
Statement issued by the South African Communist Party November 17 2008
