In the opinion piece dated October 3, Jacob Zuma has been falsely criticized by Max Du Preez, the WMC sentinel for the nationalization of the South African Reserve Bank (SARB) and enforcing fiscal burdens on the banking system in South Africa. These cooked up allegations are akin to Don Quixote charging at the windmills! Here are two case studies that prove that Jacob Zuma’s policy to keep the banking sector under government control is a risk mitigation strategy for the South African economy.
- The Wall Street Crash of 1929 that others refer to as the Great Depression was an outcome of the nexus between the power brokers of the BFSI (Banking, Financial Services and Insurance) vertical in Wall Street and government policy makers. Rampant privatization of the banking sector led to a crisis of epic proportions. John Maynard Keynes had remarked that the invisible hand of the market must be replaced with the visible hand of the government.
- The Sub Prime Crisis of 2008 that saw Gulliver’s giants in Wall Street collapse like a pack of cards was again the doing of banking sector liberalization and sub prime credit given by investment banks. Economies like Brazil, Russia, China and India were the least affected, thanks to a strong public sector control over the banking system and the presence of large scale public sector undertaking banks. Prof. Raghuram Rajan from the Booth School of Business, Chicago University in his seminal research paper “Has Financial Development Made the World Riskier?” had warned intelligentsia of the fallout of excessive banking sector deregulation. His prophecy came good in 2009.
The people of South Africa need to see through the evil designs entrenched in the free market prescription of Du Preez. SARB and the banking system in South Africa need regulation, not the “sellout” medicine of Du Preez.
WMC and Max Du Preez’s Sheepish Silence on Corporate Funding of Cyril Ramaphosa
A prime example of the obnoxious weed of corporate funds fomenting corruption is the poster boy of Max Du Preez and the WMC, Cyril Ramaphosa. Here is a list of Ramaphosa’s equity investments and share holdings in various subsidiaries of MNCs and South African corporations:
- McDonald’s SA 100%
- Mondi Shanduka Newsprint 42%
- MPACT 10%
- Alexander Forbes 7.8%
- BIDVest 0.6%
- Coca-Cola Shanduka Beverages 70%
- Diepkloof Retail Development 52%
- Investment Solutions 7.8%
- Kangra Coal 30%
- Lace Diamond 13%
- Liberty Life 1.5%
- Lonmin 9.1%
- MacSteel SA 7.5%
- Matrix Marketing 28.2%
- Standard Bank 1.2%
- TBWA 25%
- MTW 0.45%
- Pan African Resources 26%
- Scaw Metal 5%
- SEACOM 12.5%
- Shanduka Coal 50.01%
Max Du Preez loves slinging mud on Jacob Zuma. He asserts that the Gupta family finances the campaigns of Jacob Zuma. He though prefers to ignore the way in which Ramaphosa has colluded with corporations to buy votes, voters and the state machinery. Noted Russian economist Tatyana Zaslavskaya has coined the term “Nomenklatura” to denote the corporate-polity marriage of convenience of electoral funding and award of state contracts to corporations. She says that the Nomenklatura is at the heart of corruption in democracies. Corporations and venture capitalists are engaging in state capture by funding political leaders like Cyril Ramaphosa and their election campaigns.
Exposing the Lies of Max Du Preez and White Media & The Case in Favour of Jacob Zuma’s Statist Model
WMC bullies and Du Preez are deliberately diverting the attention of people. Falsely implicating Jacob Zuma for exerting state control on SARB and shedding crocodile tears on his hypothetical nexus with the Gupta family shall yield no results.
Jacob Zuma’s policies deserve to be commended because of the following reasons:
- State capitalism is required in stages of infancy of an economy. The Statist Model of nationalization must be used to secure the banking and financial sectors. Rampant deregulation of the banking sector on the false pretext of fiscal profligacy as suggested by Max Du Preez and the white media, shall set the clock back in favour of the corrupt white monopoly capital. That would be naked state capture.
- Economic development and resolution of social tensions are not corporate prerogatives. History stands witness to the fact that no corporation has ever addressed issues of poverty, racism, class struggle, income inequality, deprivation and entitlement failure. In the words of Milton Friedman: “The only business of a business is to do business.” Cyril Ramaphosa and his corporate allies are wolves in the garb of sheep, here to loot South Africa. His political campaign fundings must be scrutinized and closely monitored.
The lives of ethnic blacks, white Afrikaner and the coloured South Africans are not commodities to be traded by the WMC for profits. South Africa is not for sale to the WMC. Jacob Zuma’s Statist Model is pursuing a socialistic agenda for the economic development of South Africa.