/ 29 July 2003

SA needs investment, not lawsuits, to build economy

Investors, both foreign and local, should take the risk of investing in South Africa in a bid to build a ”decent” society out of the ruins of apartheid, SA Institute of Race Relations chief executive Johan Kane-Berman said in Johannesburg on Tuesday.

Kane-Berman was commenting on a suit launched by victims of apartheid against multi-national corporations that did business with the former National Party government.

He said he was recently asked by some foreign companies with a presence in the country, and that were fingered in the suit, how they could help South Africa.

”The only thing they can do together with South Africa is to take risk, invest and to be good corporate citizens while they do it.

”This is the best way to reconcile the requirements of their shareholders with our need to build a decent society out of the ruins of apartheid,” he said.

On the lawsuits, Kane-Berman contended the United States courts could not decide on matters that affected victims of apartheid in South Africa. He argued the lawsuit brought against the companies should be heard in South Africa because it is a sovereign country.

The possibility also existed that the case against the corporations, which is due to be heard in New York, would be dismissed on the grounds ”of violation of South African sovereignty”.

”These lawsuits can run for a long time. For instance if South Africans win the case, with the American [justice] system the companies can appeal and this can go on forever,” he said.

Kane-Berman added it was an unusual pleasure that he found himself in agreement with the government on the issue of the lawsuits.

He said Justice and Constitutional Development Minister Penuell Maduna issued a warning that the claims against business would jeopardise investment in the country.

President Thabo Mbeki had also said it was unacceptable that matters that were central to the future of the country should be adjudicated in foreign courts which bore no responsibility for the well being of South Africa.

Numerous prominent corporations have been named in the suit and, through their alleged collusion with the apartheid government, have been accused of a range of crimes including kidnapping, torture and murder. – Sapa