Johannesburg – Business leaders have joined the chorus of calls by civil society and other prominent members in leadership for an independent judicial inquiry into the Presidency over allegations of state capture.
According to a statement issued by Business Leadership South Africa (BLSA), chaired by Jabu Mabuza, the organisation supports Deputy President Cyril Ramaphosa, ANC secretary general Gwede Mantashe and the South African Council of Churches in calling for a probe into the Presidency.
“South Africa needs an independent judicial commission of inquiry to restore confidence in our economy, our democracy and the future of our country,” the statement read. “The toxic cloud hanging over the office of the President is eroding the legitimacy of our government and hurting investor confidence.”
BLSA explained that the Constitution obliges President Jacob Zuma to put the interest of the country first. A judicial inquiry would be useful in establishing the truth regarding allegations of state capture, revealed in former Public Protector Thuli Madonsela’s report, released last year.
“South Africa is already suffering consequences from this crisis of confidence in the legitimacy of government,” said BLSA.
The organisation indicated that the recent credit downgrade was partly triggered by concerns of corruption. The junk credit rating is also having a negative impact on business confidence. As businesses put larger projects on hold, this cuts into job creation opportunities.
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Economist Mike Schüssler said there has been a breakdown of trust between government and business. As a result of the uncertainty, businesses would rather wait before taking on new investments, with a negative impact on growth. Businesses are also likely to take on cost containment strategies going forward.
BLSA in turn said the stagnating economy would further widen the inequality gap among South Africans.
The business organisation also called for the dissolution of the Eskom board, following the reinstatement of Brian Molefe as chief executive. Public Enterprises Minister Lynne Brown and the Eskom board on Tuesday appeared before a Parliamentary oversight committee to answer questions on Molefe's reinstatement.
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BLSA recently expressed its disappointment in Zuma's decision to reshuffle the Cabinet. The move saw former finance minister Pravin Gordhan being replaced by former home affairs Minister Malusi Gigaba.
Two ratings agencies, Standard & Poor’s and Fitch, subsequently downgraded he sovereign rating to sub-investment grade.
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