Recent revelations on how the African National Congress (ANC) used its investment arm Chancellor House to divert taxpayer’s money into its own coffers explains the ruling party’s obsession with black empowerment policy, Democratic Alliance (DA) leader Helen Zille said on Friday.
Writing in her weekly newsletter, Zille said uncovering the ANC’s business deals justified the DA’s concerns around black economic empowerment (BEE).
”We have consistently said that the ANC’s version of BEE has nothing to do with the much-needed empowerment of black South Africans to use the opportunities emerging in a non-racial, open society.”
The ANC had used BEE to benefit only a select few, she said.
”BEE under the ANC has been perverted for the benefit of a small clique in the ruling party and its business partners, who are usually deployed party insiders, and who in turn must pay their dues back to the party and its leaders,” Zille said.
Chancellor House, the ANC’s business front set up to seek profit, has investments ranging from minerals and energy to defence.
Zille said the company, whose empowerment deals were now subject to a forensic audit ordered by the ANC’s new leadership, was set up for the benefit of the ruling party’s elite.
”We have seen that through Chancellor House the ANC stood to benefit from multibillion-rand tenders awarded by Eskom for the building of new power stations.
”This was taxpayers’ money that was destined for the ruling party’s coffers until Eskom reneged on the deal after it was exposed,” she said.
While it was not unexpected for the ANC to behave in such a manner, it was worrying that business had played along.
”We have come to expect this behaviour from the ANC, but it is astonishing how complicit business appears to be in this institutionalised corruption. More worrying is that many businesses seem to see nothing wrong with such practices.
”I wonder whether major companies like Standard Bank and Liberty Life (and many, many others) have asked themselves about the damage that these practices inflict on South Africa’s chances of consolidating and sustaining democracy.” – Sapa