General malaise

There is a new sickness that is sweeping the country - and its effects will not be felt in overflowing hospital beds, but rather in stilted economic growth.

The problem used to be jobs for pals as politicians favoured their friends, but now it goes beyond that. It seems that only those who are connected get government tenders, which allows them to flourish as entrepreneurs.

This phenomenon has even resulted in a new word: tenderpreuners. It's fairly self-explanatory and refers to the amount of get-rich-quick fat cats that are gracing our highways, byways, and boardrooms. Some of these people are already in wealth-generating positions, such as ministers and members of Parliament.

Too many of these people have benefited from tenders that have not been granted by following the proper procedures, which could well have cost the country in overspending on these contracts. Rightly, there has been an outcry from opposition parties and market commentators.

Julius Malema, president of the ANC Youth League, sparked what has probably been the biggest outcry over tenders. Media reported that a company, of which he is apparently a director, won a Limpopo roads contract - and then did a shoddy job.

Malema, unsurprisingly, has denied the whole thing. He says he resigned from the company involved, and claims that perhaps someone at the Companies and Intellectual Properties Office (Cipro) did not do their job, and follow through with the paperwork.

That, however, is a column for another day, because to say Cipro's database is in a shambles would be putting it mildly.

South Africans do not get nearly as irate as they should when politicians are found to have cupboards full of skeletons.

Nicola Mawson, senior journalist, ITWe

The ICT sector is not immune to these types of scandals. For example, communications minister Siphiwe Nyanda has a 50% stake in a little company called General Nyanda Security (GNS), which has won tenders worth about R123 million.

His only benefit from his involvement in the firm is allegedly a driver who drives his kiddies and other family members around. At least, that's what is listed in the parliamentary register.

However, if I owned half of a company, I'd want to share in the proceeds. Who knows how much was spent servicing those contracts.

Assuming a 10% profit margin, that would equate to R12 million, of which his share would be R6 million. Nyanda's payout from the deal could build just over 100 RDP houses, at R55 000 each.

Nyanda may well have formed GNS after he left the Defence Force. We don't know. He has been rather quiet on his dealings with the company - apart from denying being involved in its daily running - and GNS doesn't seem to be in the Cipro database, incidentally.

It also turns out that Nyanda has MTN shares. Not a lot, admittedly: what is R80 000 worth of shares when you drive a multimillion-rand Beemer?

Some people don't see the problem with Nyanda holding even one share in a company that falls into a sector over which he presides in his silk suit.

A lack of concern over what could turn out to be favouritism is the biggest worry of all. We don't know if the shares were a gift, or simply a shrewd investment. Perhaps the stake was purchased long before Nyanda became minister.

Sure, many people have shares in MTN. The stock must form part of a lot of portfolios managed by brokers. However, lots of other people who have shares in MTN are not the minister of the communications, and are not in a position of power in the sector.

The fact that he does not have shares in any other telecommunications operator could be an indication of bias towards MTN. A savvy investor should have shares in more than MTN, Old Mutual and Sanlam.

They say that you don't [ahem] where you work. Usually that applies to having an affair with a work colleague. The same, however, applies to other aspects of business. Business people and politicians should not be involved in anything that clashes, or could be seen to conflict with their main job.

It is a politician's job to run the department, and guide and govern the country. He or she should do so without any hint of favouritism whatsoever. Simple.

Sadly, South Africans do not seem to expect this anymore, and do not get nearly as irate as they should when politicians are found to have cupboards full of skeletons.

This attitude is going to cost the country, and the economy, dearly over the next few years. Unless citizens stand up and tell those we voted into power to stick with what we mandated them to do - and not run little security companies on the side - why would anyone focus on the task at hand?

Politicians should not be favouring their friends when handing out deals, and they certainly should not be involved in other business interests. The reason they were voted into power is to govern, to provide flush toilets to the rural poor, establish infrastructure, create jobs and cut the cost of connectivity in SA.