New ‘Internet censorship bill’ open for comment until mid October 2020

Stella Ndabeni-Abrahams, Minister of Communications and Digital Technologies,  recently extended the period for comment on the Draft Film and Publications Amendment Regulations, which align with the Films and Publications Amendment Act (FPAA).

DearSA-internet censorship

Anti-censorship groups have dubbed this the “internet censorship bill” for seeking to regulate what it deems “harmful content” and to corral online content providers under its wing. Many commentators have pointed out the regulations contravene Constitutional rights to freedom of expression.

A campaign by Dear SA attracted nearly 14,000 comments, the overwhelming majority expressing their opinion against the Bill as it stands.

“I did not sign up for fascist, communist tyranny,” says one commentator.

“Gross overreach,” says another.

Yet another: “Freedom of speech should be a basic right and any law that has as its aim the removal of this right should be viewed with great reservation and suspicion, it is one step away from a police state.”

President Cyril Ramaphosa signed the Bill into law on 4 October 2019, though it has yet to come into effect. Defenders of the bill argue that though the clumsily worded document extends itself to everybody distributing content online, in practical terms little will change for most people, if only because regulators are simply unable to deal with the volume of content produced daily. Others. However, have pointed out that this is always a dangerous assumption – that government will not attempt to extend its reach to the literal limit of the law.

It is therefore almost certain this Bill will be challenged in the Constitutional Court should it proceed in its present form.

In practical terms, all online distributors of content – whether they intend to make money from it or not – will have to register with the Film and Publications Board (FPB) and submit content for review prior to publication, or apply to the FPB Council for self-classification accreditation. Another alternative is to seek approval for the use of classification ratings issued by a foreign international classifications authority.

Previously, the Film Publications Act limited itself to the regulation of films and games, and only where these were made available for hire or sale. Now its reach extends to all online content.

Once the FPB issues a registration certificate, it can then impose any conditions it deems necessary to achieve its objectives, which are:

“To regulate the creation, production, possession and distribution of certain publications and certain films by means of classification, the imposition of age restrictions and the giving of consumer advice, due regard being had in particular to the protection of children against sexual exploitation or degradation in publications, films and on the Internet; and to

“Make the exploitative use of children in pornographic publications, films or on the Internet, punishable.”

While few people would disagree with the need to have strict laws against the sexual exploitation of children, the reach of the new Regulations goes well beyond this. The state, in the form of the FPB, will now have a say over every piece of online content distributed via the internet.

It seems inconceivable that the drafters of the Bill gave much consideration to the Constitutional protections to freedom of expression, nor to the practical effects of issuing registration certificates to tens of thousands of content producers and each item of content published. Every bit of ‘film” – which means a “sequence of visual images” – is covered by the bill, and will require an age classification from the FPB.

Interestingly, those who are members of the Press Council of SA get a free pass. Those who are not and intend to publish online content “shall submit the publication to the FPB together with the relevant form provided by the FPB, and the prescribed fee, for examination and classification, before it may be distributed or exhibited within the Republic (of SA).”

In other words, the state will now decide who is fit to distribute content (in effect designating who is a journalist) and will require everyone to submit to the registration and classification process.

You will have to apply to the FPB for classification of a film or trailer, and once that film or trailer is reviewed, each member of the classification committee will be expected to express their “opinion” with reference to the Classification Guidelines of the FPB.

A majority decision by the classification members will carry the day.

Similarly, if you are a broadcaster falling under ICASA (Independent Communications Authority of South Africa)

The amended Films and Publications Act makes it a criminal offence to distribute a film as defined above without first registering with the FPB and getting your “sequence of visual images” classified with an age restriction.

Many commentators have expressed alarm at the draconian nature of this regulation and its echoes of the darkest days of apartheid censorship. Though the Bill does not on its face appear to infringe political discourse, it is broad enough to conceivably be used in such a manner under a less benign regime. In other respects, this Bill goes beyond the wildest dreams of apartheid’s information police because of its attempt to extend the arm of the law to virtually anyone expressing an opinion or providing entertainment online.

If you are convicted under this Bill, you face a fine of up to R150,000 and imprisonment for up to eight months.

You have until the end of October to comment on this bill, and you probably should.

Eskom fails to meet conditions for funding set by National Treasury

In 2019, National Treasury voted an amount of R59 billion in terms of a Special Appropriations Bill to assist Eskom pay interest and capital on its R488 billion debt.

DearSA-Eskom-fail

This allocation was based on Eskom meeting certain conditions based on operational, financial, governance and restructuring compliances.

A recent presentation by National Treasury shows while Eskom succeeded in meeting most of these conditions, it failed in certain critical areas. For example, it failed to dispose of Eskom Finance Company by 31 March 2020, and has also failed to implement the remuneration standards required as a condition of loan funding.

In other areas, there was partial compliance, such as information on the full duration of loans taken out by Eskom, and the cost, timing and benefit plans relating to the completion of the new Kusile and Medupi power stations.

It has also failed to provide National Treasury with a full and detailed report on the defects in the new build programme.

“Despite Eskom not complying with two conditions, the information submitted and the weekly progress updates provided were sufficient to allow the disbursement of the approved equity allocation of R 49 billion for 2019/20,” says a statement by National Treasury.

The Department of Public Enterprises (DPE) was also non-compliant on two of four conditions set by National Treasury:

  • It did not ensure the Eskom board was strengthened by 31 December 2019, and;
  • It failed to ensure that Eskom’s executive management performance agreement is linked to Key Performance Indicators as previously outlined by the minister of finance and in the shareholder compact.

“DPE has not submitted any progress report or correspondence to National Treasury on the measures they are implementing in order to comply with the remaining unmet conditions,” says National Treasury.

Subsequent to 31 March 2020, Eskom had submitted all outstanding information required by Treasury. As of 27 August 2020, R6 billion of the R56 billion earmarked had been disbursed to Eskom.

In a submission to the Standing Committee on Appropriations (SCOA), Eskom provided details of government support since 2008: a total of R188 billion, of which R60 billion was a loan and the balance equity.

For the financial year ending 31 March 2020, government made R49 billion available to Eskom to ensure that its contractual interest and capital payments were timeously made. This “recapitalisaton” came with conditions in terms of the Special Appropriation Act: it could only be used to settle debt and interest payments and nothing else. This R49 billion was supplemented by R36.2 billion in cash flows from Eskom operations, with a further R32 billion raised in external loans.

For the year ending March 2020, Eskom paid R31.5 billion towards loan principal and R39.1 billion towards interest.

Without government support, Eskom would not have been able to meet its debt obligations as they fell due.

“As Eskom is a critical state-owned enterprise, it is vital that the public are involved in crucial decisions that affect tariffs and the stability of the grid,” says Hutchinson. “We will continue to keep a close eye on developments at Eskom, and involve the public more – particularly where taxpayers are being asked for repeated funding.”

Nearly 15,000 South Africans reject a special appropriation of R59 billion for Eskom

A Dear South Africa campaign seeking public comment on the Special Appropriations Bill awarding an additional R59 billion to Eskom returned a resounding “No” verdict.

Some 89.7% of the nearly 21,000 who commented on the Bill through the Dear South Africa platforms were against the additional funding for Eskom, with just 3% in support. The balance of 7.3% did not fully support the funding appropriation.

It has also become apparent that Eskom has failed to meet certain key conditions set by National Treasury for the disbursement of these funds.

A common theme among those opposing the additional funding was that Eskom was a bottomless pit of endless bailouts and tariff increases, with funds being diverted away from social needs to a entity that had been proven to be corrupt. High salaries, over-staffing, corruption and bonuses were seen as the drivers of the need for continual taxpayer-funded bailouts.

Solutions suggested by commentators (among those voting for and against the additional funding) are unbundling and privatisation; allowing consumers and other producers to sell energy back into the grid; reclaiming stolen funds; reducing the head count and salaries; collecting outstanding debts from municipalities and consumers, to name a few.

The Dear South Africa campaign was agnostic as to the outcome, merely providing information for South Africans to make their voices heard. Dear South Africa is a non-profit which aims to encourage broader public participation in legislative and policy issues as required under the Constitution. It makes no attempt to influence the outcome of these campaigns.

A suggestion from those not fully supporting the additional R59 billion funding to Eskom was to limit it these new funds to core operational functions (not debt repayment). There is also a desire to see National Treasury take a more hands-on approach to the management of these funds. A common suggestion from those not fully supporting the R59 billion bailout is to sell Eskom shares to the public as a means of raising funds and allowing ordinary South Africans to participate in a restructured enterprise.

Among those commenting in favour of the latest bailout, the solutions do not substantially deviate from those opposed to it. Those in favour want to see privatisation and unbundling, recovery of municipal debt owed to Eskom, management by professionals with proven competence, suspension of staff bonuses and fully transparent coal supply contracts – and a re-examination of Independent Power Producer (IPP) contracts as these are deemed excessively expensive.

Says Dear South Africa programme director Rob Hutchinson: “On both sides of the aisle in this debate, there appear to be no sacred cows as far as Eskom is concerned. A high percentage of commentators say all contracts must be subject to brutal transparency and the rush to solar and wind power appears to have fewer friends in light of the high costs of purchasing energy which does not flow when the sun does not shine, nor when the wind does not blow. That’s according to a large number of comments received.

“But the level of engagement on this campaign was high, which shows there is deep concern about Eskom and what it means to the wellbeing of the country.”

New cannabis bill allows you to grow your own – within limits

Cannabis-bill-DearSA

The Cannabis for Private Purposes Bill, published for comment in August 2020, proposes allowing adults to grow up to four plants (per adult) at home, and exchange up to 100 grams of dry cannabis, provided no money changes hands.

The bill will also expunge any criminal records for those previously convicted of the possession or use of cannabis.

At the core of the Cannabis for Private Purposes Bill is the right to privacy embodied in Section 14 of the Constitution.

The release of the bill for comment follows the September 2018 Constitutional Court ruling that the prohibition on the personal use and cultivation of cannabis by adults in their own homes was unconstitutional. The government was given two years to amend the offending legislation.

Dear South Africa is calling for public comment on the bill. There has been considerable comment around the bill, both for and against. Some have argued that cannabis is a gateway to more harmful drugs, and that children and non-consenting adults may be exposed to potential harm. There are also concerns over the police’s ability to enforce violations of the proposed law.

Though the new bill allows for limited cultivation and use of cannabis in one’s own home, there are severe penalties for those violating the proposed new law: 15 years maximum jail for anyone dealing in cannabis or provides it to a child under 18. Smoking cannabis around children can also land you four years in jail, or two years if you smoke in public or too close to a non-consenting adult.

Cannabis is defined as anything containing the psychoactive cannabinoid THC (including vaping of cannabis-derived liquids).

The proposed legal limits for personal, legal use of cannabis at home are:

  • unlimited for seeds and seedlings
  • four flowering plants for those living alone, or eight for homes with two adults or more
  • 600 grams of dried cannabis if you live alone, or 1.2 kilograms in homes with two or more adults.
  • In public places, possession is set to 100 grams of cannabis or one flowering plant.

The bill proposes allowing private adults to carry up to 100 grams of cannabis in public, though it must be concealed from public view.

Those previously convicted of cannabis-related offences under the Abuse of Dependence-producing Substances and Rehabilitation Centres Act, or the Drugs and Drug Trafficking Act, will automatically have their criminal convictions expunged.

While the bill proposes relaxing possession, cultivation and use of cannabis, the following will be deemed to be in violation of the new law:

  • Any person who exceeds possession limits in a public place;
  • Any person who exceeds possession limits in a private place;
  • Any person who smokes cannabis in a public place;
  • Any person who smokes cannabis in the immediate presence of any non-consenting adult person;
  • Any person who smokes cannabis in the immediate presence of a child;
  • Any person who smokes cannabis in a private place near a window, ventilation inlet or doorway to or entrance into another place;
  • Any person who consumes cannabis in a vehicle on a public road.

Have your say on this bill. Does it go far enough in protecting the rights of children and non-consenting adults? Are the penalties for over-stepping the bill too severe? Will it encourage greater use of cannabis and act as a gateway to other, potentially more harmful drugs?

South Africans say “No!” to exporting meat from endangered species

Meat-safety-DearSA

More than 45 000 people reacted to Dear SA’s campaign inviting comment on draft legislation allowing meat from endangered species to be added to the list of animals allowed to be slaughtered, consumed and traded.

Click the link at the end of this article to view a report and public comments.

The overwhelming majority of those participating in the campaign objected to government’s plan to expand the list of animals for slaughter and trade to include endangered species such as rhino, elephant, hippos and more. The proposed list would also include undefined birds, reptiles and fish too.

Why did most of the public participants object to these amendments? Here is a sample of some of the comments:

“It is unconscionable to slaughter and trade wild animals, especially endangered and near-extinct species like rhino and elephant.”

“The sale of any products derived from endangered species should be strictly prohibited. The sale of products creates a market for those products and if there is a market there will be poaching and exploitation.”

“Ban the wildlife trade. Consuming wildlife increases the very real risk of zoonotic disease.”

Dear South Africa’s Enviro Expert Coalition was formed earlier this year to provide expert input and guidance on policy and legislative matters relating to the environment and wildlife. One of its first tasks was to bring public attention to the proposed amendments to the Meat Safety Act, 2000 (Act No 4 of 2000) published in February 2020.

The number of comments received and the strength of views expressed far exceeded what Dear SA anticipated for an otherwise routine legislative amendment that could have passed unnoticed, says Chloe Roberts, spokesperson of Enviro Expert Coalition.

“As a non-profit, the objective of the Enviro Expert Coalition is to enable public participation on environmental matters relating to legislation on a local, municipal or regional level. The scope of this coalition will cover all matters related to environmental affairs currently managed under the Department of Environmental Affairs,” adds Roberts.

“With the successful launch of our first campaign, we opened our platform to participants and received around 45 000 submissions which was an outstanding response. Our aim was to inform the public of the changes that were being proposed while supplying a platform where they could have their say and freely express their views around the suggested changes.”

Roberts adds that many of the comments from the public were informed and passionate. Of particular concern to most, is the proposal to add species such as elephant and rhino to the list of animals suitable for human meat consumption. Not only were some of the “new species” listed already endangered, but they are already considered highly commercialised in a conservation sense.

The Enviro Expert Coalition serves in a non-partisan capacity, seeking to inform public opinion rather than mount a petition. The feedback from the campaign has been compiled into a report which has been be submitted to the relevant parliamentary committee for consideration. (available here)

Dear SA is a public participation platform enabled by Sections 59 and 72 of the Constitution, which compel the facilitation of public involvement in legislative processes.

It monitors legislative developments on a continuing basis to ensure that Parliament is held to the standards of public involvement written into the Constitution.

Unlike petitions where citizens sign on to a particular demand or pleas, Dear SA makes no attempt to influence the outcome of its campaigns. Its process of inviting and collating public comments ensures that the individuality of each submission is maintained, compiled and delivered to Parliament.

“Our group is eager to expand its network to include other organisations seeking to effect change for the better within our society by updating legislative procedures and ensuring that transparency prevails,” says Roberts. “We will be looking into new legislative amendments going forward as our focal point and will continue inviting the public and other organisations to get involved on matters close to their hearts.

“The environment should be preserved for future generations and the responsibility to preserve rests on our shoulders.”

A massive live sheep export from SA to Kuwait was just greenlit – now to see if farmers regret it

Phillip de Wet , Business Insider SA

A huge shipment of live sheep is now cleared to depart a feedlot in the Eastern Cape, be loaded onto a waiting ship in East London, and then likely to be transported to the Middle East for slaughter.

sheep-DearSA

That, says exporting company Al Mawashi, will be to the considerable economic benefit of that province, and eventually more of the country as it builds a pipeline of live animals to Kuwait and beyond.

But the farmers and meat industry that are now so enthusiastic about the prospect of a new market will come to regret it, one animal-rights advocacy group warns – and will eventually feel it in their pockets.

read more here Business Insider SA

Parliament forges ahead with nationalisation of SA Reserve Bank

Mayibongwe Maqhina – IOL

Parliament is forging ahead with a process aimed to amend the law to allow for the nationalisation of the South African Reserve Bank (SARB).

DearSA - SA Reserve Bank

This comes after EFF chief whip Floyd Shivambu made a presentation on Tuesday night to a joint meeting of the National Assembly’s standing committee on finance and National Council of Province’s select committee on finance.

Shivambu’s presentation came almost three years after EFF leader – Julius Malema gave notice to Parliament to introduce the South African Reserve Bank Amendment Bill, six months after the ANC resolved at its December 2017 conference to nationalise the central bank.

The amendment bill could not be processed in the last term of Parliament and was recently revived for processing by the national legislature.

Chairperson of the standing committee on finance Joe Maswanganyi said the bill would be treated like any other bill introduced by a minister.

Select committee chairperson Yunis Carrim agreed that they would look at its content.

However, DA MPs Dennis Ryder and Willie Aucamp, who both serve on the National Council of Provinces, took issue that the NCOP was being involved in the bill’s introduction in the National Assembly and also raised the issue of its constitutionality.

They were overruled by Maswanganyi and Carrim since there was an arrangement in Parliament for committees of Houses to receive the introduction of bills and also to hold public hearings together owing to the Covid-19 pandemic.

In his presentation, Shivambu said as MPs they could individually introduce legislation, which should be discussed and once passed by the two houses, be taken to the president for assent.

He said MPs had the right to approach the Constitutional Court if what was contained in the bill was inconsistent with the Constitution.

Shivambu also said the South African Reserve Bank currently allowed private individuals, including non-citizens, to own shares and that the private shareholders had a role to play in the governance of the central bank, including receiving dividends from the bank’s profits.

He told the meeting that the bill was about the ownership of the bank.

“We appreciate the ongoing debate on the role and independence of the SARB but we deal with the ownership component,” he said, adding that there was nothing wrong with the mandate and role of the central bank.

Shivambu said out of more than 200 central banks worldwide, SARB was among the nine that still have private shareholders.

“By and large, the reserve bank is responsible for the reproduction of apartheid economic and financial inequalities. Significant shareholders are not people of South Africa and the majority are white people,” he said.

He insisted that the shareholders of the bank did not reflect the demographics of the country.

Shivambu said it was time the bank was owned by the country’s 57 million South Africans.

“In terms of the legislation we table, we set out three objectives. We are intending the state to be sole shareholder of shares of the reserve bank.

“We provide appointments of the board of directors, tenure of office of appointed directors and … whoever is minister will do so on behalf of a democratically elected government.”

He also said the finance minister would have the power to appoint directors of SARB.

Shivambu said the bank should no longer be owned by a group of individuals and that it should deal with the concentrated ownership and control in the banking and insurance sector.

“We need to take ownership of the reserve bank to guarantee true sovereignty and autonomy of our country and Parliament. From there we can debate the mandate of the reserve bank,” he said.

Shivambu said the 1994 democratic election had transferred political power but the economy remained in the hands of a few people.

“Today, we are presenting an important legislative milestone in the journey that will transform the South African economy,” he said.

Asked about legal issues surrounding getting the shares from private individuals and compensation, Shivambu said no rational court could grant billions in compensation.

He said there would be no massive financial gain accrued to the current shareholders of SARB as the highest dividend to shareholders was not above R1 000.

“There would never be a sound claim for compensation when we take over ownership,” he said.

Parliamentary legal advisor Noluthando Mpikashe told MPs that the bill in its current form would not pass constitutional muster.

“It is important to note that it does not stop the committee from processing the bill,” Mpikashe said, adding that as legal advisors they were not final arbiters.

Shivambu said issues of constitutionality should be raised at the end of the amendment process.

“No legal advisor can stop any bill from being tabled. It does not exist anywhere in the rules,” he said.

Shivambu also said the parliamentary process, which entailed public comments, should be allowed to take its course.

After some discussion, which saw Shivambu clash with Carrim, the MPs decided to advertise the bill to obtain input from the public.

MBOWENI PRAISES SWIFT NATIONAL ASSEMBLY APPROVAL OF 2 COVID-19 TAX RELIEF BILLS

Gaye DavisEWN

The Disaster Management Tax Relief and Tax Administration Bills were passed without any parties objecting and will now go before the National Council of Provinces (NCOP) for concurrence.

tito-m-DearSA

The National Assembly has approved two COVID-19 tax relief bills.

The Disaster Management Tax Relief and Tax Administration Bills were passed without any parties objecting and will now go before the National Council of Provinces (NCOP) for concurrence.

The bills were tabled by Finance Minister Tito Mboweni with the emergency budget in June and provide for tax relief measures to help businesses, households and individuals deal with the economic impact of the pandemic and the lockdown.

Finance Minister Tito Mboweni commended lawmakers for swiftly dealing with the COVID-19 relief tax bills.

“The tax bills are never straightforward and to consider them under tight deadlines, through a new communications medium, makes it even more challenging, but I think you have risen to the challenge.”

Mboweni said that the crisis made it necessary to use the tax system to provide relief and support the economy as a whole.

Opposition parties, including the Democratic Alliance (DA) and the Freedom Front Plus said that while they supported the bills, they believed that the relief offered was not enough to get the economy moving again.

The bills provide for, among other things, the deferred payment of taxes, a skills development levy payment holiday and increasing the tax-deductible amount of donations to the Solidarity Fund from 10% to 20%. The relief window’s been extended by two months and will apply until the end of September.

No environmental assessments needed for gas pipeline, water, electricity and solar infrastructure

Large-scale projects for the roll-out of gas, electricity, solar and other infrastructure projects will be given exemption from the need for environmental authorization in terms of notices gazette by the government on 31 July 2020.

DearSA-EIA-Exemption

This is certain to excite strong opposition from environmental lobby groups which have laboured for years to enforce compliance with the laws and regulations already in place.

But after nearly five months of lockdown, and an estimated 3 million jobs lost, authorities are under pressure to fast-track massive infrastructure developments to get the economy moving again. This has been suggested as one of the possible motivations for the proposed exemptions.

The National Environmental Management Act allows the minister to exclude certain activities and projects from the need to obtain environmental authorisation provided an “environmental management instrument” is developed that avoids, manages and mitigates environmental risks associated with the projects.

To all intents and purposes, this is a way of speeding up infrastructure development without having to go through the often agonising process of undertaking environmental assessments and approvals. Going through the usual environmental hoops can take several years, and that adds to the eventual cost of infrastructural development.

This does not mean, however, that environmental issues are neglected. The “environmental management instrument” is supposed to take care of that, though there is understandable suspicion that this may be a way of side-stepping environmental regulations imposed on all other projects that do not enjoy exemptions.

A series of environmental authorisation exemptions have been proposed that would cover virtually all major gas pipeline projects currently under consideration. This is achieved through the adoption of a generic environmental management programme for gas pipeline infrastructure.

Exemptions are also proposed for electricity transmission and distribution powerline infrastructure falling within certain geographical areas known as Strategic Transmission Corridors.

There are five primary corridors (and two extensions) for electricity transmission and distribution: from Limpopo to Gauteng; Gauteng to the Northern Cape; Gauteng to the Western Cape; Kwazulu-Natal to the Western Cape; and the Western Cape to the Northern Cape. Should more than 10% of the proposed electricity transmission and distribution powerline infrastructure fall outside these corridors, the entire project is subject to the Environmental Impact Assessment Regulations which were published in 2014.

A new environmental standard has been developed for these geographical areas which would exclude electricity transmission and distribution powerline infrastructure from having to obtain environmental authorisation. The Minister of Forestry, Fisheries and the Environment has also set management and mitigation standards that would exempt landcare, ecosystems and working for water projects from the need to obtain environmental authorisation.

The public is also being asked to provide input on procedures to be followed when applying for, and deciding on Renewable Energy Development Zones (REDZ).

The opportunity for the public to comment closes on 4 September 2020.

SA seeks proposals for 2,000 MW of emergency power

South Africa has issued a request for proposals to procure 2,000 megawatts of emergency power, a step needed to help plug a severe energy shortage, the department of energy said on Saturday.

Source – Reuters

electricity-DearSA

South Africa’s state-owned power utility Eskom has been forced to cut power regularly, hobbling economic growth in Africa’s most industrialised country as unreliable coal-fired plants struggle to generate enough electricity to meet demand.

Scheduled blackouts, known as load shedding, have resumed as South Africa has eased strict lockdown restrictions to contain the new coronavirus and has re-opened power-hungry industries, such as mining, in a bid to kick-start a weak economy.

During load shedding, which is meant to protect the national power grid from complete collapse, residents and businesses are typically left without electricity for a couple of hours at a time.

In December, South Africa issued a request for information (RFI) to source between 2,000 and 3,000 megawatts (MW) of generation capacity to be connected in the shortest time, at the least cost.

“All power procured under this programme is expected to be fully operational by not later than the end of June 2022,” the department said in Saturday’s statement, adding it expected to attract around 40 billion rand ($2.33 billion) of investment.

In February, Turkey’s Karpowership, one of the world’s largest suppliers of floating power plants, said it had submitted plans to provide “several” ships capable of alleviating the country’s power shortages.

The department of energy said on Saturday that bidders would need to conform to South Africa’s policies designed to broaden economic participation for the black majority and to make commitments to job creation and skills development.

New tax resistance threat to fragile SA

OPINION/EDITORIALS – FinancialMail

Thanks to the state’s handling of the lockdown, ours has become a country where the risk of rebellion has never been higher since democracy

South Africans — illicit cigarette smugglers, the ANC Women’s League and a smattering of EFF populists aside — may have been united in their delight at moving to a less restrictive level 2 lockdown this week, but that’s probably where the sense of national unity ends.

One of the harshest lockdowns in the world may have helped avoid a ghastly crush on hospitals, but it has left traumatic financial and social scars — and a country divided like never before.

It has birthed an unhealthy sense of us and them: ordinary South Africans versus rapacious political elites. This was illuminated starkly at the funeral of ANC stalwart Andrew Mlangeni, where not only did the politicians casually break their own rules on the number of participants at a funeral, but soldiers were photographed smoking — at a time when cigarettes were banned.

The response was predictable. When the Daily Sun interviewed people at a vibrant social gathering in the middle of the Joburg CBD afterwards, with alcohol in plentiful supply, they deemed it an act of rebellion against government hypocrisy. As one participant said: “They tell us to observe Covid-19 regulations and ban tobacco and alcohol sales, yet they smoke, drink and gather at funerals with more than 50 people.”

Thanks to the state’s handling of the lockdown, ours has become a country where the risk of rebellion has never been higher since democracy.

Last week, nonprofit Sakeliga released the finding of a new poll, in which 95% of respondents said the lockdown had reduced their willingness to pay tax. Six of 10 respondents said they’d even consider illegally withholding tax if it could end the lockdown quicker.

The social compact is precarious. As former SA Revenue Service executive Telita Snyckers wrote in the FM this week, the lockdown has given South Africans a “taste for insurgency — the danger of a tax revolt has never been greater”.

It means, says Sakeliga CEO Piet le Roux, that businesses are becoming “unusually motivated to decrease their tax payments”.

Le Roux’s argument — based on the poll — is that the corruption, mismanagement and harmful policies that accompanied the lockdown have created a “perfect storm” for tax morality in SA.

And it’s not just among individuals or small businesses. Le Roux says a senior executive at an “iconic” local company “considers paying tax in SA a possible violation of the American Foreign Corrupt Practices Act, since the money largely funds harm, mismanagement and corruption. While this interpretation is probably, legally speaking, incorrect, it is morally striking.”

It’s not hard to see why so many in the private sector — unlike public officials who suffered few salary reductions or job losses — feel so bitter. This is clear from the 61% of businesses that told Sakeliga they’d suffered big financial losses through the lockdown.

Now, the pandemic was always going to hurt incomes. But the way the state handled the lockdown — implementing rules without consultation, refusing to explain its decisions, and failing to crack down on corruption in its ranks — left a bitter taste.

Treating SA’s citizens — corporate and private — with such disdain, when they’re the ones who pay civil servants’ salaries, is a recipe for disaster. It’s not acceptable to keep the country in the dark over the science behind frightening Covid mortality models, nor to close ranks against tax-paying businesses when you’re likely to need their support now more than ever.

It’s unclear whether President Cyril Ramaphosa can mend this rift — but if he wants a shot at finding the money SA needs to survive, he’ll have to prioritise such a reconciliation.