The ANC for Sale? Money, Morality & Business in South Africa

Abstract

The African National Congress (ANC) as a liberation movement drew much of its strength from its moral underpinnings as fighting for a just society. However, since its acquisition of political office in 1994, the ANC is widely perceived to have lost its moral compass. This demoralization needs to be located within the structural determinants of the South African transition. Against the background of the dilemmas faced by the ANC in its bid to promote its National Democratic Revolution (NDR), this paper explores how the party's need to secure funding has seen it complement official state funding by tapping corporate largesse, moving into business and accessing public monies. Meanwhile, the mutual interests of the new political power holders and established business have forged close connections across the public and private divide which at times have bordered on the criminal. Despite the ANC's declared intentions to address its moral rot by implementation of new ethical controls, the reciprocal needs of powerful business interests and party elites are likely to limit their effectiveness. Continued pressure for ‘revolutionary morality’ must therefore come from below and outside the ruling party.

Notes

1. The Asian connection is well known but poorly documented.

2. Which led to Khumalo's resignation as Chairman of Capital Alliance in December 1997.

3. It is not wholly clear whether this R3.5 million was inclusive of, or additional to, the sums presented to the two ANC regions.

4. What follows is drawn from the superb expose by Vicki Robinson and Stefaans Brummer in the Mail & Guardian, 10–16 November 2006.

5. Under the Mineral and Petroleum Resources Development Act of 2002 (in force from 1 May 2004) the state owns all mineral rights. Existing rights‐holders are now required to convert their ‘old order’ rights to ‘new order’ rights over time, meeting progressive empowerment targets.

6. The ranking has been undertaken by the 27th edition of the important McGregor's Who Owns Whom. The values listed here do not take into account debt held against shareholdings.

7. One of his sisters is married to Cyril Ramaphosa, another to Transport Minister Jeff Radebe.

8. The information above has been culled from newspapers and other sources such as successive editions of the Financial Mail's The Little Black Book.

9. Amongst press coverage, see notably Business Report (8.10.06). Also, Crawford‐Browne (2007).

10. South Africa Country Profile, http://www.business‐anti‐corruption.com/normal.asp? (accessed 15 March 2007).