PoliticsPREMIUM

POLITICAL WEEK AHEAD: Solidarity, Free Market Foundation to table report on ‘huge cost’ of BEE to economy

The report’s release comes amid strong business opposition to the proposed Transformation Fund

Picture: 123RF/XTOCK IMAGES
Picture: 123RF/XTOCK IMAGES

Trade union Solidarity, in partnership with the Free Market Foundation, is this week set to present a report that calculates the “huge cost of BEE policy” on the economy.

The report will be unveiled during a press conference on Thursday, said Solidarity’s Pieter Jordaan.

Its release comes amid fierce debate over the government’s BEE policies with strong business opposition to the proposed Transformation Fund and the defence of the policies last week by international relations & co-operation minister Ronald Lamola and President Cyril Ramaphosa.

The Tshwane and Johannesburg metro mayors, Nasiphi Moya and Dada Morero, are set to address the media in the capital city, Tshwane, on Monday, “where we shall unveil full details of the forthcoming Africa Mayors Assembly” to be held on June 12, followed by the U20 Sherpa Meeting on June 13-14.

These events will be held at the CSIR International Convention Centre in Tshwane.

On Tuesday, the transport ministry is set to convene a physical meeting with the full board of the Road Accident Fund (RAF), after a decision by the RAF board to place CEO Collins Letsoalo on precautionary suspension.

Business Day reported recently that Letsoalo had been placed on leave pending a Special Investigating Unit (SIU) inquiry into multimillion-rand contracts and tenders at the fund. 

The SIU has been investigating RAF management after the entity signed a R79m lease for a Joburg building with Mowana Properties. Letsoalo approved the contract against a bid evaluation committee’s recommendation. 

The Sunday Times reported that a preliminary SIU report allegedly “implicated Letsoalo in possible wrongdoing” in the contract. 

“The meeting will evaluate the prospects of the current board to restore good governance and effective administration at the entity so that it fulfils its primary purpose of compensating road accident victims timeously,” the transport ministry said in a statement.

“The department will consider appropriate interventions post this meeting to ensure the stability of the entity, good governance and the fulfilment of its mandate. To ensure the speedy and equitable access to the Road Accident Benefit Scheme by thousands of road accident victims, the department intends to finalise the Road Accident Benefit Scheme Bill,” it said.

“The bill will introduce a no-fault system to make it easier for road accident victims to access the benefits without costly legal bills. The bill will also introduce standardised benefits and compensation to facilitate more equitable sharing of the benefits among claimants.”

Also taking place on Tuesday, the National Council of Province’s (NCOP) select committee on agriculture, land reform & mineral resources will engage with representatives of Eskom, Sasol and the department of energy & electricity on the cost and operational implications of stricter air quality standards targets and the financial implications of the termination of exemptions from emission regulations.

The NCOP’s select committee on finance will be briefed by the auditor-general on the performance of Gauteng provincial treasuries and its entities and other issues for consideration.

On Wednesday, the portfolio committee on international relations & co-operation will receive a presentation from an NGO, the Southern African Liaison Office, on the political and conflict situations in the Sudan and South Sudan, and SA’s efforts to bring about peace in the region.

The select committee on economic development & trade in the NCOP will be briefed by the SA Post Office’s business rescue practitioners on the entity’s financial sustainability.

On Thursday deputy president Paul Mashatile will answer questions from MPs in the National Assembly.

mkentanel@businesslive.co.za

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