Treasury, black business lobby kiss and make up

Cape Town - National Treasury and the Black Business Council (BBC) seem have buried the hatchet amid friction on radical economic transformation in South Africa.

The delegation from National Treasury was led by Finance Minister Pravin Gordhan and included his deputy Mcebisi Jonas. The BBC delegation was led by its president Danisa Baloyi and the national office bearers.

The BBC and National Treasury indicated in a joint statement on Friday that the meeting sought to discuss various "strategic" issues.

"The meeting was characterised by robust and frank discussions. It was agreed that further engagements both at strategic and technical level will continue."

Although Treasury said in a tweet the meeting "was a closed bilateral", BBC secretary general George Sebulela told Fin24 by phone the meeting was "very fruitful".

He declined to provide more details on the issues discussed but pointed out that it was "crucial to advancing economic discussion" in South Africa.

The meeting follows a heated exchanged between Gordhan and a BBC executive at the National Economic Development and Labour Council (Nedlac), reported Fin24 sister publication, City Press. 

It is reported that a BBC executive read a statement that attacked the Budget Speech.

“Despite fearmongering by the ratings agencies, the BBC does not believe that South Africa has a debt problem. South Africa has a net loan debt of 45.5% of gross domestic product. This is relatively low by international standards.”

The BBC accused Treasury of “siding with the financial sector to force through a [BEE] charter that endorsed the principle of 'once empowered, always empowered'".

Other points of criticism included a failure to amend the “draconian Preferential Procurement Policy Framework Act” to allow for “set-asides” – contracts only available to black businesses.

“White monopoly capital will continue to be the main beneficiaries,” the statement added.

According to anonymous sources, Gordhan accused the BBC of trying to “capture” National Treasury and representing the interests of a single family, believed to be the Guptas.

Mzwanele Manyi, head of policy at the BBC, then asked Gordhan to retract this statement, which he refused to do, said the second source.

The BBC said in a statement following the Budget Speech that it fell short of addressing radical economic transformation, reported Fin24 at the time.

“The BBC calls upon government to use a wider range of macroeconomic policy tools that include exchange rates, state control and influence over finance capital, reserve requirements, capital controls, prescribed assets, credit quotas and differential interest rates. There must be a close co-ordination of monetary, fiscal and industrial policies,” it said.

"The BBC shall continue through its portfolio committees to fight for radical economic transformation on the legislative front. We shall maintain active scrutiny to each policy initiative and framing of legislation and each bill put to Parliament to ensure that there are no constraints placed on radical economic transformation."