The ANC has fallen into the trap set for it by its alliance partner, Cosatu, which put the governing party’s resolve to fight corruption to the test with a proposal to ban politically exposed people from doing business with the state.
It is no surprise that the ANC lekgotla balked at the idea of the ban — but it proves that the party’s resolve to fight corruption has limits, and those limits were exposed by its opposition to the proposal at the weekend meeting.
The proposal by Cosatu was agreed upon by business, labour and communities in the National Economic Development & Labour Council (Nedlac), but was "heavily resisted" at an ANC national executive committee lekgotla over the weekend.
In his closing address to the lekgotla, broadcast on Monday, President Cyril Ramaphosa said while the meeting reaffirmed that public servants or government employees should not do business with the state, "further consultations" were required on whether this should apply to politically exposed people, which includes elected officials.
The global Financial Action Task Force, of which SA is part, defines a politically exposed person as an individual who is or has been entrusted with a prominent public function. This could prevent, for instance, ANC NEC members and other elected party leaders as well as their spouses and children, from doing business with the state.
The FM understands that the proposal was resisted by those who are opposed to Ramaphosa’s reform agenda, but also by those who are seen to be in his corner in the fight against corruption. Many argued that it would not work practically and would unfairly disadvantage the families of politicians.
Labour argues, however, that the ANC’s position is a political one and not a legal one and that being a politician was a "choice too" and those who chose this path should be willing to have their close family step away from conducting business with the state.
The ANC will now have to explain to its ally why it was not willing to take this step to fight corruption
It is understood that during the Nedlac process ministers Gwede Mantashe, Thulas Nxesi and Mmamoloko Kubayi-Ngubane also opposed the proposed ban.
Cosatu insiders widely expected the proposal to be rejected — but the ANC will now have to explain to its ally why it was not willing to take the drastic but necessary step to fight corruption, which has reached crisis proportions in SA.
Relations between the ANC and Cosatu are frosty at the moment. The federation effectively boycotted the ANC lekgotla, though its official line is that it was unable to spare any leaders to attend the meeting due to an upcoming strike.
This is highly unlikely. Cosatu has 18 affiliates and could generally spare an office bearer from at least one of these unions to represent it at ANC or alliance meetings.
This also comes after Cosatu found the time during the same period to hold a bilateral meeting with a competing federation, the SA Federation of Trade Unions (Saftu) led by axed Cosatu general secretary Zwelinzima Vavi. On Wednesday Cosatu and Saftu joined forces in a nationwide stayaway against corruption, inequality and the state’s flouting of collective bargaining agreements.
Cosatu is clearly turning up the heat on its ally, after backing Ramaphosa’s reform ticket at the ANC’s elective conference at Nasrec.
But it seems his administration is floundering, which has prompted the federation to change tack and adopt a hostile stance. This should alarm Ramaphosa and the ANC, particularly as the 2021 election approaches and as Cosatu and Saftu seem to be putting their differences aside to take on the state.
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