ANC does not want to concede that redistribution of wealth does not create prosperity

25 July 2019

Even after 25 years, the ANC has still not learnt that the redistribution of wealth does not create prosperity. Instead, it is an obstacle in the road to economic growth and it only leads to unemployment and poverty, which affects everyone.

Affirmative Action (AA) might as well be called Discriminatory Action as it is busy destroying the country's economy. It is important to uplift people, but not at the expense of others.

The policy of Black Economic Empowerment (BEE) only benefits a small black elite who are also redistributing already existing wealth among themselves without creating true prosperity.

Assets are handed out instead of promoting entrepreneurship and uplifting communities. Economic empowerment in South Africa must not be aimed at enriching certain individuals, but must focus on truly empowering communities.

Moreover, colour cannot be used as a criterion for upliftment. After 25 years of democracy, socio-economic circumstances must be the determining factor. Factors, such as poverty, unemployment and a lack of education, must be taken into account.

There are numerous examples of how the ANC's BEE policy actually has the most detrimental effect on the poorest in the country. Where companies previously donated money to non-governmental organisations, they are now hesitant to do so after the implementation of the stricter BEE legislation seeing as their BEE score may affect their tax status.

An example of this is children's homes. If there is one white child in the children's home, the companies that want to donate money to that children's home will not be able to claim back tax due to BEE targets. So if there are a 100 children in a children's home and one of them is white, companies will be hesitant to donate money to that institution and that is to the detriment of the other 99 children.

In the Free State, there is currently an ongoing court case about the Department of Social Development's policy regarding the allocation of funds to social service organisations like children's homes. The people who are dependent on these donations are the ones who are paying the highest price.

The FF Plus condemns the application of racial quotas in the allocation of state funds to social service organisations.

Poverty is a national problem that affects a large part of society and all communities. The FF Plus will strive to promote a community-based social service.

Issued by Armand Cloete, FF Plus MP in NCOP and spokesperson: Social Development, 25 July 2019