Related Articles
Top Stories
May 27 2012 11:21
There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.
May 27 2012 11:49
The country's 200 000-odd Tupperware agents are angry about the counterfeit products being sold as the real McCoy.
May 27 2012 13:09
The oversupply of golf estates has claimed another victim.
Johannesburg - The investment arm of the National Union of Mineworkers (Num) says nationalisation has never improved the economic lot of people in the countries in which it was adopted.
"I grew up as a trade unionist knowing it was good to nationalise the economy, but I have since realised that is not the case," said Paul Nkuna, CEO of the Mineworkers Investment Company (MIC), who presented the group's business review on Friday.
"I have not seen any country that adopted nationalisation and its citizens' economic status has improved as a result."
Nkuna occupied a senior position in Num before he was deployed to form the MIC in 1995. The company has since accumulated significant investments, which includes being the single largest shareholder in both radio station owner Primedia and gambling company Peermont Global.
It also owns significant minority stakes in vehicle tracking company Tracker, FirstRand, Metrofile and Set PointTechnology.
Asked if his company has engaged with parent Num on the nationalisation debate - initiated by the ANC Youth League and supported by trade union federation Cosatu - Nkuna said it was not his role.
Happy with SA's mixed market
"That is for the politicians to do," said Nkuna. "I would be crossing the line as mine is only to run the company and Num's to deal with worker issues."
Since formation in 1995, the MIC has returned R368m in community and bursary sponsorships to the children of mines and construction workers. "We are using the wealth we create to advance a socialist agenda for our communities," said Nkuna.
He admitted his company was comfortable operating in the mixed market that South Africa is currently following. "We use the benefits of the mixed economy to advance the socialist development of the communities."
The MIC said it invested in sustainable cash-generative industries because the resulting dividend payments fund its programmes.
During the economic recession it has doubled its 10% stake in Set Point Technology and increased most of its stakes in the other listed companies. "That's because we did anticipate the headwinds and our war chest is big enough to see us through the tough times," said Nkuna.
- Fin24.com