Business Report
*Gigaba adds weight against league's nationalisation call * *Donwald Pressly, Business Report, Johannesburg, 2 August 2011*The ANC Youth League's campaign to nationalise major sectors of the economy was dealt a possibly deadly blow yesterday when Public Enterprises Minister Malusi Gigaba described it as "reckless".
He joins a growing army of leaders -- both in the ANC and business -- in warning of the dangers of the debate dragging on, upsetting the markets and local and international investor confidence. Others who have spoken out include Anglo American chief executive Cynthia Carroll, Business Leadership SA's Michael Spicer and Bobby Godsell, Chamber of Mines chief executive Bheki Sibiya, and ANC treasurer-general Mathews Phosa.
Significantly not a single cabinet minister has come out in direct support of the nationalisation call since youth league president Julius Malema forced it on to the agenda of the national general council -- a policy review conference of the ANC -- last year.
Speaking at the American Chamber of Commerce, Gigaba -- who is a former youth league president and one-time friend of Malema -- was also scathing about Malema's campaign to divide the country on race lines. Sapa reported him as saying "populism is easy, but populism is also cheap".
He also emphasised that the ANC as a movement would defend its non-racial mandate.
"Our people fought not to replace white supremacy with black supremacy... but with a non-racial society," he said.
Gigaba added that people "who stand on public platforms in front of mikes" -- an obvious reference to Malema -- did not make the momentous decisions about important policy matters. It was the ANC as an organisation which did so.
A task team -- set up by the national general council to study nationalisation options -- was looking at key examples around the world and a decision would be made at the ANC's elective conference next year "in the best interest of the mining sector".
In contrast to Malema's fiery language -- including references to white people being criminals and white monopoly capital as being the stuff of enemies -- Gigaba put his neck out for racial tolerance. He criticised those who resorted to "racial intolerance" in public.
Gigaba's remarks follow on the heels of Phosa who, speaking at a Standard Bank executive luncheon last week, said some of the criticism that the ANC had "dropped the ball in terms of reconciliation and nation-building" was valid.
The issue of nationalisation should have been dealt with "more expeditiously", he said.
In contrast to Malema's call for nationalisation without compensation, Phosa -- who was elected one of the top six in the ANC on a wave of support for President Jacob Zuma at Polokwane in 2007 -- gave his support to free enterprise.
"I certainly do not believe we should indulge ourselves in meddling with the affairs of successful and profitable concerns," Phosa said.
Meanwhile, the youth league reported that Limpopo's ANC provincial general council had passed a declaration that it would defend the league's right to raise critical issues "within our movement".
"We also support the nationalisation of mines and other strategic economic sectors as one of the necessary conditions for social ownership and control of our economy," it said.
Malema's support base is seen as being strong in his home province, but it is unlikely that he will swing the majority in the ANC on the nationalisation issue.
The slow build-up of opposition to his call is now developing a momentum.Sibiya was reported by miningweekly.com as saying: "I want to say to you that this is a battle (against nationalisation) not to be lost." His chamber would bitterly oppose any constitutional amendment that was not in mining's interest.
"I won't hesitate to take this matter to the Constitutional Court."Mineral Resources Minister Susan Shabangu has been consistently opposed to the youth league's nationalisation campaign.
*From: http://www.iol.co.za/business/business-news/gigaba-adds-weight-against-league-s-nationalisation-call-1.1110002*
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