From allegations of PPE procurement irregularities and suspicions of security tender fraud to apparent non-payment of pensions and mysteriously disappearing diamonds, it seems as if every week brings about a new arrest or another court appearance of office bearers or senior managers of the Northern Cape provincial administration. Right now, the Special Investigation Unit (SIU) is scrutinising everything that the Northern Cape Economic Development, Trade & Investment Promotion Agency (NCEDA) has done since 2012.
Combined with shortsighted policies, it is impossible to ply an honest trade, do business or boost investor confidence in such a climate. NCEDA is intended to play a key role in the development of the Boegoebay harbour, but will investors want their brands associated with an agency that is embroiled in legal controversy? Or an administration that prominently features, even protects, convicted criminals as senior managers?
The entity’s amalgamation with the Northern Cape Tourism Authority, gazetted last month, does not inspire confidence that the Northern Cape provincial government is currently geared to drive sustainable development. The mandates for the merged mega-entity remains vague, which means that the cost implications of this legislation remain unknown and we cannot say, with any certainty, whether the merger will result in any real savings for the provincial purse.
It is no surprise that investor confidence in South Africa remains muted. Businesses do not want to pay the cost of corruption that is associated with ANC-governments. As Quarterly Labour Force Surveys confirm, however, businesses and entrepreneurs are flocking to the investor-friendly DA-led governments where good governance creates an environment that is conducive for businesses to grow and to thrive. While NCEDA faces legal consequences for illegal transactions, their equivalent in the Western Cape managed to score an export deal with China that will boost the Western Cape’s coffers by R300 million each year.
It is this kind of economic development that is only possible with an incorruptible, caring government in charge.