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The road to kakistocracy

The ANC needs to wake up to the reality of an electorate prioritising service delivery over loyalty to struggle credentials.

So says Webster Mfebe, CEO of the SA Federation of Civil Engineering Contractors, a 78-year-old organisation which represents civil engineers with expertise in constructing roads, bridges, dams and buildings.

Last month, Mfebe raised eyebrows at a construction expo at Gallagher Estate in Midrand when he described the country as a “kakistocracy” – meaning that the government was being run by the nation’s worst or least-qualified citizens.

This week, Mfebe reiterated his views during an interview with City Press at the organisation’s head office in Bedfordview, on Johannesburg’s East Rand.

“We must avoid South Africa sliding into a kakistocracy because when you begin to have part of the leadership saying, ‘if the rand falls, you simply pick it up’ – referring to the reaction by Water and Sanitation Minister Nomvula Mokonyane in April to the country’s credit rating having been downgraded to sub-investment grade – that cannot be a principled stance,” Mfebe said.

Asked how close he thought South Africa was to becoming a kakistocracy, without hesitation the former ANC MP said: “I think we are five minutes away from becoming a kakistocracy. Some would argue that we are already in a kakistocracy”.

Appearing to take a swipe at the governing party, Mfebe said it did not bode well for politicians to be so reckless.

“Perceptions are more effective than facts,” he said, pointing out that the ANC Youth League was not helping when it came to potential investors’ perceptions of government.

“When you reward them, you reward them as a collective. Likewise, when you punish them, you punish as a collective,” he said, adding that it was wrong for people to blame the state of the economy on President Jacob Zuma.

Mfebe is passionate about the quality of leadership and walks his talk, having received a prestigious Kaelo Award in 2014, which honours successful black entrepreneurs and senior executives, for his business leadership. He is currently a finalist for the Global CEO Award Africa. The winner will be announced later this year.

Mfebe, known for not mincing his words, expressed satisfaction with the transformation taking place within the multibillion-rand construction industry.

He said listed companies were mainly transformed and it was only at CEO level where black faces were rare.

Among the major local listed construction companies, only Group Five has a black CEO in Themba Mosai.

“You cannot say these are white-owned companies,” added Mfebe.

“There are many investors, some of them institutional. Yes, the management and control may be white – that is where you have to change.”

He said the organisation he leads, which has 406 members, was transformed.

He wasted no time in making changes to the company’s constitution when he took office in 2013. The required transformation included gender equity.

“I was charged with turning around this organisation when I was appointed in 2013. We have to be circumspect and not play the colour card. Let us rather play the card of excellence in the form of the ability to execute the programme,” he said, adding that he saw a brighter future ahead, especially for industry professionals.

Mfebe said the R1.5 billion development fund – set up as a contribution by the construction companies which had been implicated in colluding to secure contracts for the 2010 Fifa World Cup Stadium Projects, in addition to penalties imposed on them – was enough to set the industry on a fast-paced transformation drive. A significant part of the money had been set aside to empower black contractors.

“Collusion amounts to about 1% of the total projects that happened at the time, so it was not a widespread problem. However, it was a prohibited, illegal activity,” Msebe said, pointing out that cover-pricing was an illicit practice that seemed to have been overlooked.

Cover-pricing is when companies collude on pricing to predetermine which of them gets the contract by overpricing their bids – in so doing, forcing the client to go for the lowest bidder of the group of bidders.

Last month, Mfebe raised eyebrows at a construction expo at Gallagher Estate in Midrand when he described the country as a kakistocracy meaning the government was under the control of a nation’s worst or least-qualified citizens.

This week Mfebe maintained his position and said the country was surely sliding into a kakistocracy.

“We must avoid South Africa sliding into a kakistocracy because when you begin to have part of the leadership that says if the rand you simply pick it up. That cannot be a principled stance,” Mfebe said during an interview with City Press at the organisation’s head offices in Bedfordview on Johannesburg’s the East Rand.

Asked how far he thinks South Africa is to becoming a kakistocracy, without hesitation the former ANC MP, said: “I think we are five (minutes) to becoming a kakistocracy and some would argue that we already in a kakistocracy”.

Seemingly taking a shot at the governing party, Mfebe it did not bode well for politicians to be utterly reckless.

“Perceptions are more effective than facts,” he said pointing out that the ruling party’s youth league was not doing any good to the perception of government by investors.

“When you reward them, you reward them as a collective likewise when you punish them you punish as a collective,” further saying it was wrong for people to blame the state of the economy on President Jacob Zuma.

Mfebe is a man that is passionate about the quality of leadership.

So passionate is his love for leadership that it sometimes unsettles people.

He is a recipient of the prestigious 2014 Kaelo Award for being one of the thought leaders in business in South Africa and is a finalist for the Global CEO Award Africa, the winner of which will be announced later this year.

Mfebe is not a man of minced words and leaves little space for grey areas in his speech.

He said that he was happy with the transformation within the multibillion rand construction industry.

Mfebe said listed companies were mainly transformed and it was only at CEO level where there was rarity of black faces.

Only Group Five has a black CEO, Themba Mosai, among the major local listed construction companies.

“You cannot say these are white-owned companies, there are many investors, some institutional. Yes the management and control may be white and that is where you have to change,” he said.

He said the organisation he leads, which has 406-members is well transformed and his move to change the constitution when he ascended to the office in 2013.

The organisation’s constitution, he said, required transformation including gender equity.

“I was charged with turning around this organisation when I was appointed in 2013,” he said of the amendments which he said ensured black faces at all level of the structures of the organisation.

“We have to be circumspect and not to play the colour card. Let’s play the card of excellence, ability to execute the programme,” he said adding that he foresees a brighter future, especially for industry professionals.

Mfebe said the R1.5 billion development fund set up by the construction companies, that colluded to bag contracts, was enough to set the industry on a fast-paced transformation drive as a significant part of the money was set aside to empower black contractors.

“Collusion is about 1% of the total projects that happened around that time so it was not a widespread problem. However, a prohibited illegal activity,” he said further pointing out that cover-pricing was one illicit practice that was also seemingly overlooked.

Cover-pricing is when companies collude on pricing to predetermine which of them would get the contract by overpricing their bids forcing the client to go for the lowest bidder of the group of bidders.

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