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New Public Protector Busisiwe Mkhwebane's dubious attempts to interfere in constitution-making play into the narrative that suggests the grand compromises of 1994 are now working against elements in our body politic and the Constitution is therefore ripe for review, writes Daniel Silke.
SOUTH Africa’s new Public Protector Busisiwe Mkhwebane achieved what was largely intended in her controversial pronouncements on Monday.
With almost daily revelations surrounding the #GuptaLinks scandal, the heat was effectively turned towards the banking sector.
And, as if that was not enough, a new channel of concern into the stability of the South African Constitution and established economic policy added to the politics of distraction and diversion.
Notwithstanding the merits of Paul Hoffman’s original complaint back in 2011 concerning the controversial Bankorp bailout, the decision to reopen this after a series of earlier investigations by Judges Willem Heath and Denis Davis is a useful diversion for a state under siege.
The banking sector has long been a target for a more populist wing within the ANC - and past tactics from elements of the sector make it an attractive object of scrutiny. But, more importantly, the discourse from the Public Protector suggests that she has bought into the ideological orbit of those ‘unorthodox’ economists and advisers who currently have the ear of Finance Minister Malusi Gigaba.
Given the status of the Public Protector and the media attention she commands, her remarks present a motivation for the removal of the institutional independence of the SA Reserve Bank and its ability to be more ‘flexible’ in monetary policy without the current constraints found in inflation targeting and interest rate decisions.
Deep-rooted distrust of finance sector
The justification for this is a deep-rooted suspicion of the traditional financial services sector and its apparent transgressions.
Ms Mkhwebane therefore represents a view that is widespread among the patronage and more populist faction within the ANC.
The problem with her announcement is that it simply does not occur only within the context of the Bankorp transgressions – it comes at a time when the banking sector is seen as an obstacle to the unfettered functioning of the Guptas and their business empire.
In addition, the regulatory environment within the banking industry has also become a troublesome burden for many crony capitalists.
The Public Protector’s announcement also comes at a time when the historical economic paradigm now present in the Ministry of Finance is being challenged by Minister Gigaba’s new advisory team. And it takes place just as the independence of the country’s institutions are under attack in order to bolster an alternative ideology and patronage-based clique.
Indeed, it is precisely what Moody’s warned of following the rating agency's recent downgrade and will confirm its negative outlook for the near future.
And furthermore, it comes at a time when the Constitution is beginning to be viewed as an obstacle for the advancement of similar vested interests. Ms Mkhwebane’s highly dubious attempts to interfere in constitution-making also play into the narrative that suggests the grand compromises of 1994 are now working against elements in our body politic, and the Constitution therefore is now ripe for review.
Within this context, the pronouncements from the Public Protector are simply additional clues to a prevailing discourse deep within a particular faction within the ANC. It should be a warning shot to pragmatic South Africans from all political persuasions of the looming battles for control over both the policy-making paradigm and also the political power plays as the ANC moves towards an elective conference and a less certain performance in 2019.
* Daniel Silke is director of the Political Futures Consultancy and is a noted keynote speaker and commentator. Views expressed are his own. Follow him on Twitter at @DanielSilke or visit his website.
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