MALEMA COMMENTS HARMING ECONOMY
"The latest comments of Julius Malema about the nationalisation of South African businesses, not only mines, could cause serious damage to the economy by putting foreign investors off and undermining local business confidence. The Freedom Front Plus will be asking Dr. Pieter Mulder, leader of the party and deputy minister of agriculture, forestry and fisheries to take the party's concerns to Cabinet," Dr. Conrad Beyers, chief spokesperson on Finance for the party said.
According to the newspaper Rapport, Malema had made comments at a dinner in Nelspruit which boils down to all businesses in South Africa with white share-holding being a possible target for nationalisation.
"Malema's comments are escalating in that nationalisation is no longer targeted at mines only but at the whole economy. Such steps will have a catastrophic effect on the economy, just as the case had been in Zimbabwe under the leadership of Malema's hero, Mugabe," Beyers added.
In the mining industry, Malema's comments are already taking its toll. In a survey (undertaken by the Canadian Fraser Institute's Policy Potential Index) amongst the heads of approximately 3 000 mining companies, more than 80% indicated that a concern about the direction in which the government is busy following with its mining policy, is a factor which scares them away from investments in South Africa. From the start of 2009, South Africa 's position as a destination for mining investments has moved from 49th position to 67th position out a total of 79 areas (see here).
Nationalisation of the majority shares in many South African businesses and the accompanying economic implosion will lead to massive unemployment in the country. It could lead to political instability and even Egypt type revolts in South Africa .
"The FF Plus is concerned that people like Malema would like to see the economy being destroyed in order for the country to be destabilised. Malema's radical ideology of racial hatred carries more weight with him than the building of a peaceful, successful country.
In South Africa with its complex and vulnerable structure, it is easy for radicals to break down the peaceful coexistence which was established with great effort over a long period of time. That is why it is time that level headed people who carry the interests of the country in their hearts - both in and outside of the government - should make their voices heard against racist radicals such as Julius Malema and Jimmy Manyi".
Statement issued by Dr. Conrad Beyers, FF Plus Chief Spokesperson: Finance, March 7 2011
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