Speech by ANC Treasurer-General Mathews Phosa to the Progressive Business Forum Breakfast

8 April 2009, Gallagher Estate

Programme Director Renier Schoeman,
Sports Deputy Minister Gert Oosthuizen,
Mayor of Johannesburg Amos Masondo,
Treasurer-General of the Swedish Social Democratic Party Tommy Ohlstrom,
ANC and business representatives,
Distinguished guests,
Ladies and gentlemen,

Let me, at the very outset, state the obvious: The ANC will emerge as the winner in the elections that will take place in less than a month on 22 April.

Our task, as the party-in-government, is to make sure we score a resounding victory, but also to ensure that we are ready, the very next day, to carry on with the task of government.

To do that, we as ANC we have identified five priority areas to focus on for the next five years. They are:

• The creation of decent work and sustainable livelihoods
• The further improvement of educational infrastructure services
• The further improvement of health services
• Rural development, food security and land reform
• The fight against crime and corruption

For the ANC it is crucial that we should manage the above priorities in such a way that we deeply involve the local communities in their own upliftment.

Given all the costs involved in the transport of workers and accommodation elsewhere, one of our priorities will be to create work and opportunities as close to the workforce as possible.

If we build houses, roads or primary health care centers in an area, we want the local community be involved in such a way that we develop new skills in the project, and also allow the local people to earn money from the development in their own areas.

Our promotion and management of empowerment should develop in such a way that we understand empowerment to mean specifically the way in which we utilize public projects to involve the affected communities to learn new skills as well as to benefit the development of local entrepreneurs where the projects take place.

We, as the ANC in government, have achieved substantial successes in the past 15 years as a government. Some of them are:

• We have increased the number of people receiving social grants by more than 9 million.
• From an initial 34 000 children that received social grants, we now have more that 7 million children under the age of 14 receiving such grants.
• We have built 2.7 million free houses for the poor giving shelter to more 10 million people.
• Through a number of public programs we have ensured that new entrants into the employment market have the hope of finding jobs.
• Our mass literacy program is reaching more that a half a million people.
• We have created massive opportunities, jobs and skills through the 2010 Soccer World Cup.
• We have turned around an economy which was faltering when democracy dawned on us in 1994.

We know that a good governments’ work is never done and that much more needs to be done in the next five years. We are especially sensitive to the fact that we need to improve and fast-track the quality of health care and education, as well the creation of suitable infrastructure in those two sectors.

One of our biggest challenges as government will be to find innovative solutions to the current loss of foreign exchange as a result of the commodities meltdown and resulting influence of that on other sectors. The implosion of a number of financial services institutions worldwide has also made a significant contribution to some of our challenges.

The following are the challenging facts:

1. The IMF forecast for growth in the world economy has been downgraded five times in recent months, and is currently at 0.5%.
2. The banking crisis world wide is reconfiguring itself in South Africa with an unacceptably high number of house owners due to default on their payments. This places social cohesion and security as well as the principle of ownership at risk.
3. Declining commodity prices and demand have a serious impact on our exports, which brings it’s own negative implications for employment.
4. Government revenues will decline because of the above circumstances.
5. Business and consumer confidence are at low levels.

The fact that our own growth in the last quarter of last year was -1.8% reflects the above.

The question now arises as to what the appropriate policy responses should be in these circumstances. Some of them could be:

1. An expanded public works programme.
2. An increased focus on the 2010 Soccer World Cup.
3. An increase in government spending in education, health and housing infrastructure.
4. Reserve Bank consideration of lower interest rates, as will now be done on a monthly basis.
5. Promoting external investment and removing internal hurdles to competition.

In all of the above, and other appropriate policy responses, our main aim will be to protect the vulnerable, and to due everything in our power to alleviate poverty.

We need to work diligently with our private sector partners to ensure that we define projects that will bring substantive income to replace the losses, jobs and opportunities that the major stakeholders in that and other sectors have suffered.

As I stated during my introduction we, as a country, irrespective of our political persuasions, need to move forward after the elections.

To do so, we need to ensure that the following, as some of the building blocks to our future, are in place:

• A sound framework of delivery priorities aimed at alleviating poverty and involving local communities in what we do.
• The development of a national agenda of reconciliation, partnerships between all people, and a national identity as a liberated, democratic society.
• The protection and involvement of minorities in all spheres of life, and the correction of mistakes we made in this regard in the past.
• The improvement of delivery systems at all levels of government.
• The rooting out of corruption in all its’ shapes and forms.
• The improvement of regional cohesion and structures in Southern Africa.

In summary then, in terms of the election and post-election priorities:

• The ANC will win the election and immediately start the business of reshaping and refining delivery.
• We will focus our attention on shorter and smarter avenues of delivery after the elections.
• Economic and social transformation and empowerment remains at the top of the agenda.
• Let’s engage each other in a constructive way that does not create lasting bitterness and animosity.
• Let’s give all South Africans an opportunity to contribute to our national welfare and identity.
• Let us put every effort into ensuring that we build productive, profitable and job-creating partnerships between government and the private sector in this time of local and global economic challenge.

On Monday morning we witnessed the momentous public statement of the Acting Director of the National Prosecuting Authority when he announced that “In the light of the above, I have come to the difficult conclusion that it is neither possible nor desirable for the NPA to continue with the prosecution of Mr Zuma”.

Mr Mpshe, in uttering those words, set in motion a process that, in simple terms, means that the prosecution of Mr Zuma is finally over. A matter that had dominated the national debate for almost five years, has now been laid to rest.

In this regard, I want to make a number of remarks:

• Firstly I want to appeal to all South Africans to now put this matter behind us and to partner with us in building a safer, wealthier and stronger South Africa. This matter has drained our collective energy, and we must now, as a matter of priority, move on.
• Secondly, whatever the legal arguments, the matter is over and the charges are withdrawn. The matter is settled. Mr Zuma now has the right to be presumed innocent whatever opportunistic opinions will be offered by so-called experts and opposition politicians. All charges against him have been withdrawn.
• In this regard I find it cynical that the opposition parties have been silent about the evidence about alleged misconduct by the former Director, as well as the former head of the disbanded DSO.
• These allegations shed a different light on the actions of the former Scorpions, and create a much more realistic environment within which the decision by government to disband the Scorpions should be read.
• Thirdly, we are not going to counter-attack now and attack COPE leaders regarding the possibility that some of their leaders might have played a role in this matter. We have already indicated that we support a thorough investigation into this matter, be that through a Commission of Enquiry, or in another appropriate forum. We do not want to prejudge the findings of such a forum by making public accusations prematurely, irrespective of whether prima facie evidence exists or not.
• Fourthly, we call on all persons involved in this matter to come forward and make available all the information at their disposal. I personally find it hard to believe that only two individuals could have played a role in politicizing this matter or scheming on how to act to the detriment of Mr Zuma. Anyone, whether from the former DSO, the NPA or from another state institution or office, should now own up if they contributed by either acts of commission or omission to this deplorable state of affairs.
• Finally, I call on the NPA to immediately institute an objective review of all former or current cases within which similar actions might have negatively impacted on the rights of accused. There exists a strong perception that Mr Zuma is not the only victim of this vicious misuse of power and authority, and that perception should be clarified forthwith through the scrutinizing and interrogation of the facts at hand. Submissions should, in my view, also be invited.

We have to move forward as a nation, but we cannot do so if we sweep this misuse of power for ”collateral and illicit purposes” under the carpet.

I thank you.

Progressive Leader - Digital Edition