Black economic extortion, Malema style

If we had a national genie, my three requests to her would be:

  1. To make us a country rich in the resource of leadership defined by wisdom, vision and integrity;
  2. To make us a forward-looking nation, while never forgetting our past; and
  3. To enact sufficient social and economic justice to foster a genuine sense of shared national identity in order to prevent internal divisions from destroying our country’s potential.

Though we don’t have a genie of the sort about which I daydream, we sadly have another kind: the largest Gini coefficient in the world. Yes, according to South African economist, Professor Haroon Bhorat, South Africa has overtaken Brazil as the most unequal country in the world, with the largest (and still growing) gap between rich and poor. In response, Trevor Manuel declared his confusion about “what it tells us about anything”. Seriously, Trev? I thought you were brighter than that. Quite frankly, I find the sentiment offensive.

Almost as offensive as invoking the Freedom Charter to justify an excessively opulent lifestyle garnered from a career claiming to represent “the masses”. Yes, we are back to Julius and his lavish living, which the ANCYL has defended as justified by the aspirations of the Freedom Charter. Honestly? Is this really what we’ve reduced our nation’s struggle to? It seems so, yes. Malema has proudly declared that he is part of “the elite that has been deliberately produced by the ANC” and that the struggle for today’s youth is for “economic emancipation”, for the masses to “take command of the economy from the hands of white males”. Congrats, you’ve found your freedom. But while you have masses, Malema, you no longer constitute one of the masses. So please don’t defend your excessive spending as somehow being for their benefit.

The need for economic emancipation is indeed paramount, central to which is democratising the economy from the economic oligarchy of the minerals-energy complex — predominantly still owned and controlled by white males. However, simply switching the race or sex of these economic oligarchs will not result in the economic emancipation of the black majority. This will merely change the demographics of the wealthy elite; it will not transform the system of wealth accumulation or the consequent levels of inequality. We need both. As Moeletsi Mbeki cogently argues in his new book, Architects of Poverty: Why African Capitalism needs Changing, BEE has not “proved to be the fatal blow to South Africa’s oligarchs that Nelson Mandela and black nationalists of his era once envisioned. In fact, it strikes a fatal blow against the emergence of black entrepreneurship by creating a small class of unproductive but wealthy black crony capitalists made up of ANC politicians … who have become strong allies of the economic oligarchy”.

It is not Malema’s unbridled pursuit of wealth that I find so offensive. In some respects I agree with his statement that there is nothing wrong with a flashy lifestyle “if you can afford it”. My primary problem is with the political avenues through which such wealth is acquired and assertions that it is part of the noble struggle for economic emancipation for all those previously disadvantaged. Both Malema and Zuma have gained immense popular support by building their image as peasants marginalised by the political elite of the ANC to keep the poor from benefiting in the post-apartheid redistribution of wealth.

Rather than expressing surprise or even anger at the news uncovered by impressive investigative media reports, the ANCYL has, unsurprisingly, attacked numerous newspapers for their questions into Malema’s tenders, tax and (lack of) transparency and are threatening legal action: “The scurrility of these reports is a sad reflection on the absurd state of journalism in this country which has gone to the gutters.” Which is certainly not where Malema and his men have gone. They prefer multimillion-rand mansions in suburbs like Sandton. Who wouldn’t? While the ANC is (defensively) defending Malema, few other organisations are, with all other major political parties and — more significantly — Cosatu, demanding a lifestyle audit of key political players. Malema defensively argues: “I didn’t rob anybody, I didn’t take from the poor to have what I have.” But that’s not strictly true. As Moeletsi Mbeki argues, the creation of the legal category “previously disadvantaged individuals” (PDIs), which encompasses a massive 91% of the population “created the impression that all black South Africans could or would benefit from BEE. This legitimised the co-option payment to the black political elite by dangling before the black masses the possibility that one day they, too, would receive reparations for the wrongs done to them during the apartheid era”. BEE, in its existing incarnation, is a lie that robs the poor of what should legitimately be given them: a credible effort by their represented leaders to change existing economic relations both in terms of race, but also crucially, in terms of power so that the lives of the majority (not only the lives of their leaders) improve practically.

Mbeki further argues that “one of the most destructive consequences of the reparations ideology is the black elite’s relationship with, and attitude to, the South African state. As the state is said to have been party to the disadvantaging of the PDIs it is therefore also perceived to owe them something … the approach of the black elite to the state is, therefore, not that of using the state to serve the needs of the people, but rather of using it, in the first instance, to advance the material interest of PDIs … not surprisingly, corruption under the ANC government has grown by leaps and bounds”. This is one of the rare instances in which the Mbeki brothers agree. Former president Thabo Mbeki similarly noted that: “Within the context of the development of capitalism in our country, individual acquisition of material wealth, produced through the oppression and exploitation of the black majority, became the defining social value in the organisation of white society … and thus has it come about that many of us accept that our common natural instinct to escape from poverty is but the other side of the same coin on whose reverse side are written the words — at all costs, get rich!” Malema’s government tenders are one example of this impulse in the post-apartheid state. Indeed, Malema admits that many of the youth working in parliament have salaries “far beyond the duties they are responsible for”. Yet he sees nothing wrong with this reality “as long as they don’t forget where they come from and their obligation of serving the working class”. Remembering your roots is great, Malema, don’t get me wrong, but while it may assuage your guilt of being an elite, it does little for those still in the working class, particularly when your wealth relies on reproducing exploitative economic imperatives.

Moeletsi Mbeki writes of the tension facing the ANC in choosing between inheriting and enjoying the existing system of economic and political power (celebrated through the rhetoric of racial transformation) and sacrificing the fruits of that system for a more equitable one (the reality of social transformation): “The ANC is caught in a quandary. On the one hand, its members and leaders want to preserve, largely intact, the economic system inherited from the National Party era so they can benefit from it. On the other hand, they hanker for change that will ameliorate the growing inequalities and pauperisation among blacks.” Despite the short-term attraction of the easier and less costly former option, let’s sustain our support for the spirit of the Freedom Charter that envisions the latter and, as citizens, hold our leaders accountable both through persistent media pressure and through the power of our votes.

27 Responses to “Black economic extortion, Malema style”

  1. Jenson Konopo #

    Well written.

    February 23, 2010 at 1:40 pm
  2. Mkhulu #

    “However, simply switching the race or sex of these economic oligarchs will not result in the economic emancipation of the black majority.” That is true to the core, and BEE has tried but fail to address the problem.

    Attacking Malema is not helping either; he is merely a product of the failing BEE system. The big problem we have as SA is the fact that economy is still under the hands of few, mainly white males who are not willing to share with the majority. But they will rather use every media cohorts to expose/attack very few blacks that have sort to benefit themselves. Until we explain how we force these few whites to share their wealth, your 3 wishes will never be realize even if we had a genius genie.

    Malema’s wealth is nothing compared to whites in this country, diverting focus from the truth will merely prolong the debate and inevitable explosion from the majority of the country like we see in Zim.

    SA cannot be held in ransom by such a few whiles we are led (by media) to believe that the culprits are the few BEE’s cropping out within the black majority. White people will only have themselves to blame if they think shifting our focus will sustain them and their generation. It took generations to realize political will; it may take generations to realize the economic emancipation of the black majority. But it is inevitable, whites will loose or thier generations.

    February 23, 2010 at 4:06 pm
  3. Benzol #

    …and so we go on. Blah, blah, blah……with no change in site.
    Please stop living in the past, look what you have today and strive for a better tomorrow.
    You can write what you want; JZ’s apologies mean nothing, same song different tune and JM will not change cause he is on his own mission.

    Freedom charter? what freedom of what? poverty??

    Constitution? equality for the law? with a corrupt police force, incompetent judges (see recent proposals of the Law Society).

    People get used to anything over time otherwise apartheid would not have last that long.

    February 23, 2010 at 4:21 pm
  4. Panchetta #

    Reality in print, but not for the Siphiwo’s of this world.

    When we are finished with Malema can we please get back to Zuma, who has a chance to breathe now that the focus on him has been diverted. Let us not let him off too lightly….speaking of diversions, anyone remember that Shaik fellow. Is he dead yet?

    February 23, 2010 at 4:25 pm
  5. Kitty Kat #

    We are indeed in loony season. It now behoves the while liberal to stand over us and berate us for even thinking about wealth. No explaination will do. In fact, any lucid argument will fall flat on the irritated ears of our perpetual guardians. I say even if you produced EVIDENCE to prove the opposite, it will still fall on deaf ears. I totally agree that there should never be a case of patronage. BUT WHAT IS THE ARGUMENT REALLY. What are the parameters, who is excluded? Are you excluded by virtue of indirect contact, by association, by having absolutely no absolute contact with any person in govt. HOW? I do not think that this debate has set the premise for this argument. I am still to be convinced that everyone agrees to the parameters. Because if everyone agreed, why is business in particular so guilty of patronage by association. In fact, lets go deeper, by virtue of association or discrimination young white males and young white women are still benefitting through the practise of patronage. Why doesnt this author in particular, given this elevated moral highground not make a sound argument globally? Instead of atacking Malema and debating non-issues in a particular narrow way. Furthermore, at this point, please advise if this young man has broken the law or is behaving in an unconstitutional way. I remember that a particular group in this country was priviledged in a systemic way, whr is the historical background?

    February 23, 2010 at 4:44 pm
  6. Judith #

    Mkhulu – you have completely missed the point of this article. Try reading it again and think about it.

    Very good analysis, finding the solution is the challenge

    February 23, 2010 at 5:23 pm
  7. StevieWonder #

    Cogent and intelligent – not that anyone in power is likely to take it on board.
    The slippery slope to damnation and perdition for South Africa is well laid down.
    But it was a hell of a party – for some.

    February 23, 2010 at 5:34 pm
  8. Alcaponee #

    Well thought out and a well written piece. I would love to hear opposing views on this article.

    February 23, 2010 at 7:56 pm
  9. lynne #

    @Mkhulu

    i understand your frustration at the slow pace of transformation, but you have to understand how the tender system and BEE actually perpetuates the system. Remember that almost all the “tenderpreneurs” act as middlemen – they cannot do the work themselves, but sub-contract out. Whites probably won’t win the tenders because they are white, but they will in all probability be sub-contracted to do the work because they have the skills because of the previous educational dispensation. Where are the black engineers/designers/manufacturers, etc, you ask? Well, they’ve all been pushed into management positions because of the BEE quotas. They may not be given the opportunity to gain the skills needed for production because that takes too much time. Unfortunately, they often fail in their management positions because they have been promoted too quickly (the Peter principle) and sadly may never become truly effective at the vocations for which they studied.
    Also, those works which have been put out to tender are also costing more because the middleman, the “tenderpreneur” also want his (usually large) cut.
    …guaranteeing that the poor get screwed..again and again

    February 23, 2010 at 8:29 pm
  10. Mike #

    Thank god for a sensible critique of the current debates vis-a-vis Malema et al – or rather thank you, Janice.

    @Mkhulu, just posing the problem as being “white males” only serves to obscure it. It is so unfortunate that so much criticism of the present system in SA is couched in the language of apartheid. Get over it already – it’s not about races and genders, but about people.

    It doesn’t matter what race or gender the elite are – they are still the elite. And while they gobble up the wealth of the country, the inequality and poverty persist.

    Malema et al are symptoms of the disease – but unless we tackle the disease itself – i.e. inequality – the tragedy of modern Africa with its hopeless poverty and attendant social ills will persist.

    February 23, 2010 at 9:00 pm
  11. John #

    @Mkhulu: I am white and I cannot afford a R250 000 watch or a R 780 000 vehicle. Or even a R 1 mil house. Not even through a bank.

    If we get an honest “audit” on rich white men and rich black men, I am pretty sure that we might find it to be about equal at the moment.

    I am also pretty sure that you will find, if you care to compare, that about 90% of whites do not own businesses with a turnover of R 140 million per year, cannot afford R 9 000 suits, or pay R 2,1 million deposits on houses or suchlike.

    I have my plans to accumulate wealth and when I do, it would be because I deserve it. It would be because I have added value to those people who pay me for my services or products, not because I know people who have the keys to the treasury. Or because I am of a certain skin color.

    What you have written there is a lie that you choose to believe. Only you know why.

    February 23, 2010 at 9:16 pm
  12. Carla Bauer #

    I agree with Mkhulu. That’s why I left and will never come back to S.A.

    February 23, 2010 at 10:14 pm
  13. Paul Whelan #

    Are we taking Mr Malema too seriously?http://www.richmarksentinel.co.za/rs_articles_contributors.asp?conid=5&recid=661&pcurr=2

    February 23, 2010 at 10:32 pm
  14. Rod of Sydney #

    Mkhulu, you speak the truth. Buuuut as a white male who didn’t have any wealth, I didn’t like the prospect of being punished because others who happen to be white and male did. Sooooo I moved to Australia and have made more money in 5 years than I had made in 20 in SA – starting from no contacts and at the bottom…. I used to miss SA but have decided that it is pretty dirty, the roads are dangerous to drive on and living with slight tension behind bars is a half-life.

    February 24, 2010 at 7:15 am
  15. Jonathan Haze #

    Those of you who are still happy to raise their children in SA should note the writings of Mr Mkhulu.

    The infantile thought processes, the veiled threats, and the utter inability to recognise criminality – these are features characteristic of the vast majority in SA. That’s why Mr Malema will remain popular.

    February 24, 2010 at 7:42 am
  16. Paul Young #

    You really should inform the originators of the genie fable that “he” is in fact a “she”. What fun animated artists could have designing her. No doubt “she” could be much easier on the eye.

    February 24, 2010 at 9:33 am
  17. Peter Joffe #

    Sadly there are never enough of those who are prepared to work, or can work, or are qualified to work, to pay for all those who cannot work, or will not work, or are not qualified to work. Abraham Lincoln said in 1880 or thereabouts, “You cannot take from the rich and give to the poor – as you will just make everyone poor”. We have had poor people since the beginning of time and we will have poor people until the end of time.
    The only answer, if there is any answer is a good education and SEE (Self Economic Empowerment) not BEE because BEE is racially based and only empowers a few as can be seen from the many fat Black cats that it has created. The poor have not and will not benefit from BEE they can only benefit from SEE.
    Our public schooling system has been destroyed by using BEE criteria to appoint ignorant people to run the system. There is no future without good education and now we end up with the likes of Malema running the biggest business in the country – the country itself. Bring back intellect, experience and ability, regardless of race and we can start to build a new South Africa. Singing and dancing leaders can only teach us how to sing and dance.

    February 24, 2010 at 11:05 am
  18. Dave Harris #

    “South Africa has overtaken Brazil as the most unequal country in the world, with the largest (and still growing) gap between rich and poor.”
    Before you SHAMEFULLY indulge in partisan politics, lets focus on the REAL cause of this disparity, almost 20 YEARS after Mandela was released:
    - Which racial group still CONTROLS our economy?
    - Which racial group still enjoys access to the BEST educational facilities, courtesy of the apartheid regime?
    - Which racial group still controls the wealth inherited through GENERATIONS of apartheid?
    - Which racial group still VEHEMENTLY opposes the governments efforts to easing the racial inequity through AA?

    Need I continue?

    February 24, 2010 at 11:12 am
  19. The Truth #

    Mkhulu: To mention yet again that the wealth is in the hands of a few white men is misleading and completely missing the point. Transferring those jobs and that wealth from a few white men to a few black men does absolutely nothing to combat equality as a whole. You still end up with almost all the wealth owned by a few and most people unemployed and poor – only the fine print changes. Even if you take all the money and wealth owned by all whites (which would be rather extreme), drive them all out of the country and divide the money up between everyone that’s left, you’re just giving everyone a once-off handout of a few hundred, maybe a few thousand rands.

    Consider this: There are only a few million white people. Only a fraction of them are actually employed (the rest make up the old and retired, housewives, children and unemployed for whatever other reason) Only a fraction of those hold positions that even the most crazy BEE plan could get at (the rest are self employed). Even if you then hand all of their jobs over to the previously disadvantaged you wouldn’t make a dent in the overall unemployment rate.

    To make a long story short, your thinking is very short sighted. We need much better, forward thinking solutions. We desperately need real economic growth. Plotting and justifying how you’re going to get your slice of the pie is counterproductive.

    February 24, 2010 at 11:36 am
  20. Leon van Greunen #

    @Mkulu & Kitty Kat – reading your responses is an indictment to the liberation struggle. SA has been liberated for some years now, yet you still attack present day issues with an enslaved mind set. Deal with the chip on your shoulders, and free your minds to think beyond your struggle mentality.

    February 24, 2010 at 12:49 pm
  21. Jojo #

    The State budget is worth 900 billion rands. The tenders Malema got are 140 million rands. Those tenders make-up 0.02% of the budget. That is less than 0.1% and much much less than 1% of the budget. I am sure you get the picture. You are making a mountain out of a molehill. WHat happened to the 99.98% of tax-payers’ money? Is it sitting in the hands of white-owned construction and engineering companies? Yes

    February 24, 2010 at 12:54 pm
  22. Madoda #

    Well articulated story

    February 24, 2010 at 1:40 pm
  23. Peter Joffe #

    I wonder how many votes the ANC gets from the criminals that populate our prisons? It is clear that the ANC is soft on crime because you cannot afford to alienate your voters – so crime is king and the criminals run the country from jail. No where else in the world are criminals treated to the vote as they deprived honest people of their human rights. Crime pays in South Africa and ANC fat cats are becoming very wealthy by allowing it and being part of it. Whatever Malema may or may not have done, it is sure that he will be rewarded by the ANC as their chief criteria is failure. Fail and you will be rewarded and promoted to a higher level where you can cause more mayhem that you did before. Malema tells us that Mugabe is Africa’s greatest son! What sort of future do we have with that sort of ‘hero’ worship. Mbeki and Zuma are Mugabe understudies as well.

    February 24, 2010 at 7:34 pm
  24. sid #

    Well put. Pity about the usual racist slant from Mkhulu, Dave H etc. I ususally challenge this sort to prove their statements that are essentially “whites control the economy”. They never do. In fact, I suspect they can’t.

    February 25, 2010 at 8:20 am
  25. Ncumisa #

    Well said, Janice. I do not have a solution to what has to be one of our country’s greatest challenge but surely it has to start with education. The reality, I think, is that unless our education system improves drastically, the vast majority of our people will always live in poverty. I want to weep when I speak to school children or visit many township schools. It is a dire state of affairs. Teachers close school for the day to attend the funeral of a teacher from another school. Teachers having sex with learners. Teachers failing the same exams that their learners are supposed to pass. Tertiary institution students not able to spell or construct a coherent sentence. If I allow myself to dwell on it too much I feel a mild panic start to take hold of me. At those times I try my best to remain calm & focus on the goal. Finish my studies & then do everything I can to uplift the poor through education.

    February 27, 2010 at 9:47 pm
  26. Rory Short #

    In a democratic State public officials whether elected or appointed are there to serve the whole community not themselves or some selected element within the community. To believe and act otherwise is to trample on the democratic contract that was forged in 1994 between the voters and those who got voted into power. This remains true no matter what kind of government ruled prior to to the advent of democracy. This truth seems to have completely passed many members of the current ANC led government by.

    Whilst this remains so South Africa simply cannot make any progress toward what the DA calls an equal opportunity society.

    March 1, 2010 at 6:12 pm
  27. Rory Short #

    Two things @DH; Firstly, AA can never ever alleviate the poverty of the un-educated and unskilled. Secondly AA can only apply to the first world component of our economy which Apartheid sought to reserve for the white community. This only allowed the first world component of the economy to get big enough to accommodate the white community which at its biggest was less than 20% of the total population. under these conditions how on earth can AA help the other 80% of the population? Logically it simply cannot.

    March 1, 2010 at 6:33 pm

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