A party policy systematically destroying SA

The ANC's deployment policy has led to the collapse of public services at all levels, state capture and the breakdown of the economy.

The party has deployment committees for every sphere of the state, from national and provincial to municipal level. These committees propose candidates for every senior position in the public service.

Through this policy of deployment the ANC leadership deploys cadres in key positions in the public service, state-owned enterprises (SOEs), chapter 9 institutions, administrative structures of the legislatures, municipalities and their entities. I'm told their reach extends even to the boards of private companies, especially those with large government contracts.

But, even more destructively, deployment committees often have a major say in who gets lucrative government contracts through the policy of preferential procurement, which allocates government contracts on a preferential basis to black-owned companies.

Very rarely will someone be appointed to a top position, or a company secure a government contract, if the ANC leadership does not approve. Those appointed are expected to be loyal cadres to the prevailing faction.

It came as no surprise when President Cyril Ramaphosa, in his testimony to the Zondo commission, revealed that the party kept no records of the national deployment committee's meetings between 2012 and 2017. They would have made for riveting reading. It appears almost as if ANC leaders wanted to destroy the evidence.

The deployed cadres are mostly rewarded based on their loyalty to the ANC or the dominant faction, not based on their competence. Because their loyalty has been proven, they are reappointed from one position to the other. This is one of the main reasons for the collapse of the public service, SOEs and chapter 9 institutions.

BEE companies owned by ANC cadres are often not appointed on merit either. In some cases BEE companies are created by political capitalists - ANC leaders with no business experience whatsoever, who create these companies specifically to bid for a government contract. These companies get critical government contracts to deliver public services, such as health, education and infrastructure.

They often inflate prices, buy the cheapest products and cut corners.

Unless stopped now, the deployment policy will ultimately be responsible for the total collapse of the state and the economy and lead to social breakdown

Alternatively, these politically connected "companies" partner with more established companies that have the capacity, through the phenomenon of "fronting". The politically connected BEE company gets the government contract and outsources the work to an established local or international company.

Increasingly, in large broad-based BEE deals in the private sector, the ANC deployment committee has proposed the "right" cadres or their politically connected BEE companies to be empowered.

In many cases there is an informal requirement for the successful company to "donate" a percentage of the proceeds to the ANC. The ANC itself had an investment company, Chancellor House, which in the past applied for tenders in partnership with private companies. Chancellor House, for example, was given a 25% stake in the local subsidiary of Hitachi.

Together, Hitachi and Chancellor in 2005 secured a $5.6bn Eskom contract to build boilers for new power plants intended to boost SA's electricity-generation capacity by about 25%. Chancellor House made a 5,000% return on its partnership with Hitachi.

The governing party has since wound down its investment firm. In the meantime, the construction of the power plants ran years behind schedule. SA experienced regular power cuts, which cut economic growth, caused the collapse of many businesses and increased unemployment.

When we talk about lack of state capacity, it really is the lack of skills, competence and ability of deployed ANC cadres and politically connected companies. This deployment without the necessary skills marginalises skilled South Africans of all races in the public sector, where they could have delivered excellence.

It also destroys genuine black and white entrepreneurs who cannot get access to government contracts or BEE deals.

Blind loyalty to the ANC has meant that many ANC leaders and members have not spoken out earlier about the disastrous impact of cadre deployment and preferential procurement - despite the fact that these policies have collapsed the capacity of the state, undermined public service delivery and promoted corruption, slashed economic growth and increased inequality, poverty and unemployment.

Unless stopped now, the deployment policy will ultimately be responsible for the total collapse of the state and the economy and lead to social breakdown.

• Gumede is an associate professor in the Wits University School of Governance and author of 'Restless Nation: Making Sense of Troubled Times' (Tafelberg)