Nationalisation possibly not shelved - non-renewal of investment protection contracts is sign on the horizon

The Freedom Front plus is concerned about the department of trade and industry's decision not to renew investment protection contracts with international trade partners such as the EU member states (see Business Day report). These contracts offer, amongst others, guarantees to trade partners against the nationalisation of the relevant countries' assets in South Africa.

"It appears that the department had merely allowed for the lapsing of the contracts as they came up for renewal one after another. This decision makes one wonder whether the government is scared that they would have to pay billions of rand in compensation to trade partners should it be decided to nationalise. That is why this decision can only be seen against the possibility of a future form of nationalisation which could possibly be enforced," Adv. Anton Alberts, the FF Plus' parliamentary spokesperson on Trade & Industry said.

"The FF Plus will therefore be asking questions in Parliament in this regard of the minister of trade & industry, Dr. Rob Davies. "South Africa still needs its EU trade partners and any form of discrimination against them will be fatal for our economy," Alberts warned.

The FF Plus finds this decision of government also strange against the backdrop of the investment protection contract between South Africa and Zimbabwe being maintained. The government will definitely have to revise its priorities and that is why minister Davies will have to answer why these irrational decisions were taken.

Statement issued by Adv. Anton Alberts, FF Plus parliamentary spokesperson: Trade & Industry, September 26 2012

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