Phala Phala process in parliament part of restoring rule of law

The section 89 independent panel appointed by parliament to investigate the conduct of President Cyril Ramaphosa has done its work without fear or favour.

This is a positive sign of the health of our democracy and its institutions, and Business Leadership SA (BLSA) thus welcomes the panel’s report.

We share the country’s disappointment with the findings that the president may have violated certain parts of the constitution and a section of the Prevention & Combating of Corrupt Activities Act.

Whatever happens politically over the coming days, weeks and months, we must note the progress SA has made in recent years in restoring the rule of law. While large-scale corruption and mismanagement are still a feature of our society, we have seen a decisive end to the state-capture era, which caused the systematic undermining by our highest office-bearers of the criminal justice system to deliver impunity for those who extracted billions in public resources from the state.

The capability of the National Prosecuting Authority has been restored, and it is now pressing 29 cases through the courts related to state capture. We have also seen decisive improvements in the governance of state-owned enterprises (SOEs), appointments in key areas of the police services and an overall recovery in confidence in the rule of law in SA, even though there is much work still to do.

SHARP IMPROVEMENT

We have seen a sharp improvement in the financial management of the state, having turned around the disastrous trajectory that we inherited of spiralling debt levels and bailouts of SOEs. This has supported a return of confidence among business that the country’s finances are sustainable, which is beginning to be seen in a recovery of business investment.

This has been allied with many interventions to support infrastructure investment, employment programmes and the professionalisation of the public services, all of which have been steps in the right direction.

Despite the recent fracas, the adherence to the rule of law has been encouraging. The findings of the parliamentary panel are for parliament to process according to its rules and due process. Doing so is part of the restoration of the rule of law and showing that nobody is above it. This is important to ensure confidence in the recovery is not undermined.

As business, we support the appropriate legal avenues being fully exhausted as recommended by the section

89 panel. We call for all stakeholders to commit to the rule of law and due process and to support the criminal justice system in applying its processes without fear or favour.

While the indications are that the president will not immediately resign, the days ahead running into the ANC’s elective conference from December 16 to 20 are likely to see increased political tensions within the governing party. It is important during such times that the government ensures the interests of the country are not jeopardised by the infighting and narrow focus of an internal power struggle.

To repeat the words of Business Unity SA CEO Cas Coovadia, “that could create more uncertainty, so ... it’ sa big ask for politicians to actually look beyond their own interests and party political interest, but I think this is the time when if politicians across all parties do not act in a statesmen-like manner and do not put the country first ... history will judge them.”

IF POLITICIANS ACROSS ALL PARTIES DO NOT PUT THE COUNTRY FIRST ... HISTORY WILL JUDGE THEM

BLSA is concerned about the effects of this on the markets. In the immediate aftermath of the report’s release the rand shed nearly 4.5% against the dollar and the yield on 10-year government bonds surged 91 basis points. What offshore investors and local business will be looking for is certainty that the reforms and fiscal discipline instituted in recent years will not be derailed and that the state coffers will not be raided again.

What was needed — and still is — are assurances from the governing party to double down on its commitment to SA’s institutions. The response to the report should have been that the established processes will follow, with the appropriate institutions empowered to do their work to assess the evidence and take further action as required by law.

Above all, there should have been affirmation that the reform agenda will be unaffected and that if there is a change in leadership, it will be managed appropriately to ensure the work of the government will continue.