With his public spat with government spokesperson Jimmy Manyi barely in the past, Minister in the Presidency Trevor Manuel could once again come under fire from within the African National Congress (ANC) for alleged comments made about the failures of black economic empowerment (BEE), the Sunday Times has reported.
Manuel’s comments were made in an article about BEE that appeared in the Wall Street Journal last week. The story, written by respected business journalist Peter Wonacott, details criticisms around BEE policy, and quotes Manuel as calling the ArcelorMittal deal involving Duduzane Zuma, son of President Jacob Zuma, as “the ugliest face of [BEE], but not the only instance”.
The article also points out that, relative to other developing countries, South Africa has struggled to attract foreign investment; that BEE is one of several concerns for investors; and that, according to a Canadian think-tank, South Africa’s attractiveness among mining companies as an investment destination has fallen from 61 to 67 out of 79 locations.
Distanced itself
In August last year, the Mail & Guardian reported that Zuma’s son stood to gain shares with a value of close to R1-billion from the deal; that Gugu Mtshali, reportedly deputy president Kgalema Motlanthe’s romantic partner, would get shares and cash totalling more than a third of a billion rand; and that Sandile Zungu, who was heavily featured in the Wall Street Journal story last week, would get shares with a face value approaching half-a-billion rand. The Gupta family also stood to benefit similarly if the deal goes through, the report said.
Manuel’s office has distanced itself from the story. The Sunday Times reported that when asked about his comments, Manuel said: “I don’t know what you are talking about. I have no comment.”
But Wonacott, who said Manuel had made the remark during an interview in November, defended his story, saying: “Of course he made those comments. They can’t kill it by denying that it happened.”
The Sunday Times said ANC spokesperson Jackson Mthembu also chose not to comment.