State capture and corruption undermining SA’s economy – Ramaphosa

October 5, 2018

THE CITIZEN / 04 OCTOBER 2018 - 07.09 / STAFF REPORTER

 

 

The president says state capture and corruption both in the public and private sector has undermined investor confidence and public trust.

 

President Cyril Ramaphosa said South Africa’s economic performance has been undermined by state capture and corruption in public institutions and private companies.

 

President Cyril Ramaphosa speaking at the jobs summit. Photo: Presidency of the Republic of South Africa, Twitter

 

 

Ramaphosa was speaking at the two-day jobs summit convened by the National Economic Development and Labour Council (Nedlac), which got underway on Thursday.

 

The president said state capture and corruption has undermined investor confidence and public trust, eroded key institutions of the state and diverted resources intended to support development.

 

Ramaphosa’s comments come as deputy chief justice Raymond Zondo chairs the Judicial Commission of Inquiry into allegations of state capture, corruption and fraud in the public sector, including organs of state.

 

Finance Minister Nhlanhla Nene testified at the commission on Wednesday and former minister of public enterprises Barbara Hogan will testify next week on 10 October, while Minister of Public Enterprises Pravin Gordan will appear before the commission on 12 October.

 

Ramaphosa further conceded that reaching the target of reducing unemployment to 6% by 2030 as outlined in the national development plan (NDP) will be unattainable unless “something extraordinary” is done.

 

The summit is convened as South Africa grapples with stubbornly high unemployment, currently at 27.2% of the labour force.

 

Speaking earlier at the summit, Congress of South African Trade Unions (Cosatu) general secretary Bheki Ntshalintshali said South Africa has an estimated 25.9 million economically active people, with only 16.2 million of them employed.

 

Ntshalintshali said 50% of the 16.2 million employed people earn less than R5 000 per month, adding that this group is identified as the working poor.

 

“Over 9 million are unemployed, the majority of whom are young people, some of whom have no hope or prospect of ever working in their entire life,” Ntshalintshali said.

 

Ramaphosa said one of the country’s greatest potential strengths is its young population, “whose capabilities and talents the social partners [government, business and organised labour] are committed to develop as a matter of priority”.

 

“A specific area of focus is the development of the technical skills that are required in the industrial economy.

 

“Mechanisms are being put in place to enable companies to form partnerships with nearby TVET colleges, where the colleges offer the theoretical component of the programme and companies offer the practical and workplace components.

 

“This is part of a series of initiatives supported through the framework agreement to ensure that graduates are absorbed into the economy,” the president said.

 

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LINK : https://citizen.co.za/news/south-africa/2018486/state-capture-and-corruption-undermining-sas-economy-ramaphosa/

 

Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER

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