Monday, 11 January 2016

Water Shortage – a Reason for State Theft?


During a televised panel discussion – more of a question and answer session during which carefully-selected ANC cadres put prepared questions to leaders of the ANC for the purposes of a publicity campaign in preparation for the upcoming municipal elections – the Minister of Water Affairs let slip a frightening new idea.  She stated that the Government is taking steps to ensure water security to the ‘poor people’ of the country.  One of these steps is the plan to “remove control of privately-owned and –constructed dams from the White farmers” and make the water they contain available to the community.  There are several aspects of this statement that need careful consideration, because of their very wide implications to the agricultural and investment community.

A brief background to this comment is a statement made by the State President that the ANC is the leader in ensuring racial harmony and equality throughout the country.  This statement is no more than a barefaced lie.  The ANC, and particularly the State Presidents since Nelson Mandela, have been a potent force in the racialization of the country, after the racial conciliation of Nelson Mandela.  Jacob Zuma has put considerable effort into ratcheting up the racial tension, presumably in the hope of attracting the votes of the increasing poor Black sector of the economy, making statements such as that blaming all the problems of the country on Jan van Riebeeck, the first Governor of the colony in 1652, a man who was in that position for only seven years, and other statements to the effect that White capital is purposely depriving poor Blacks of work opportunities by their recruitment policies and by holding a ‘monopoly’ position in many aspects of the economy.  Of course, statements such as this are, at best, cheap politicking and, at worst, purposefully intended to enhance the racial divide, a remarkably stupid action given that the Whites represent probably 90% of the knowledge assets and 95% of the experienced skills base of the economy.  The reasons for this are partly historical, in that it requires many years for a manager of an organization to acquire the ability to manage effectively (as has been so clearly demonstrated by the abjectly poor performance of the ANC cadres who have been elevated to top positions in organisations such as Eskom, Spoornet, SAA, Petro SA and numerous others without having gained the necessary experience and competencies, and partly the result of the incredibly poor education that the ANC has foisted on the country since its accession to power 21 years ago.  Whatever the reason, the fact is that driving the Whites away, which appears to be the policy of the ANC and the EFF, will certainly result in a catastrophic collapse of all sectors of the South African economy.

One aspect is that the statement is a clear indication of the intention of the Government to steal the dams owned by the White farmers, who constructed these dams for two main reasons.  The first reason for the construction of the dams is the need to manage the flow of water over the farm lands.  In South Africa, the rain tends to be irregular and in huge quantities at one time, leading to drought conditions or to flooding, with the erosion of the valuable top soil being a frequent result.  That is important to the farmer, any farmer, including one of another racial group, although the concentration of the new policy on White farmers tends to demonstrate the fact that Black farmers have, historically, been less prudent in the management of water flows to prevent erosion.  The second reason, of course, is a desire to ensure the availability of water in times of scarcity.  As a water-poor country, that investment has been a prime reason why South Africa, in the past, was a substantial exporter of food to the world.  Now the Government plans to deprive the White farmers (please note that the plan does not seem intended to apply to Black farmers) of their right to use the water they have worked to save.  The water will become subject to the management of one of the many incompetent Government bodies, to be made available to communities and Black farmers that have invested nothing to make it available, so depriving the (productive) White farmers on an essential element of their farming and food-producing activities.  What little water the management body may deign to make available to the White farmers will, no doubt, be at a high cost, as per the example of Eskom, and the discretion of allowing that ration to the White farmers will hand the Government another tool to drive the White farmers from the country at no direct cost to the Government.  Farmers with experience know that a valuable asset such as water is not to be wasted.  They know equally that the cost of building and maintaining a dam is high, in terms of cash, time and deprivation of the use of the land it occupies.  Farmers do not build dams capriciously, or to deprive others of the use of the water (this latter has been shown admirably by the generosity of White farmers in springing to the assistance of Black farmers in the present drought by the provision of water from their own resources, often at the risk of running out of water themselves, or providing grazing or fodder to suffering Black farmers).  The dams that the Government now plans to steal are very important assets that are needed for the continued life of the farms.  Appropriation of them by the Government will be akin to a theft of the seed grown by the farmers (perhaps on the basis that the starving poor need them now, while the ‘wealthy’ farmers will need them only in the future and, in any event, can afford to buy more) or the appropriation of the lambs or calves produced on the farm.

A frightening thought is the extension of this sort of policy by the ANC.  They have already stolen the BBEEE proportion of the share capital of companies and of their allocation of salary and related expenses by companies in order to reduce the number of unemployed, almost always at significant cost to the companies involved in terms of profitability and longevity, and to the country in galloping inflation and nose-diving international competitiveness.  The demand that a proportion of the shareholding in mining companies be held by Black shareholders who are unable to offer either capital or skills has been one material cause in the reduction of investment by foreign companies in the industry in South Africa and the driving away of some investors who were already here (one international client alone left the country, with $254 000 000 –R4,3 billion at the current rate of exchange - of direct investment already made and the cancellation of several other investment plans in local industry, helped by the illegal and immoral actions of the South African Reserve Bank and the South African Revenue Services, and numerous other clients, hearing the story, have backed off intended investments in the country).  The results of these regulations are clear to see in the current state of South Africa.  However, they have been implemented by Zimbabwe, that model country in the field of economic management, so, to the State President, an earnest admirer of Robert Mugabe, they must be right! 

One can only wonder which sector of the economy will be the next target.

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