Johannesburg - Cosatu has questioned the integrity of big business following an admission last week that it is sitting on R600 billion waiting for the right signs from the government to invest in the economy.
The federation, which has accused business of being on an investment strike that has impeded economic growth and job creation, said on Monday the admission vindicated its claims.
“They are sitting on top of this cash despite the fact that the country’s economy has been shrinking from 2.2 percent in 2013 to 1.5 percent in 2014 and 1.3 percent in 2015. This points to what we have been saying that there is an obvious lack of developmental consciousness from the private sector in this country,” said Cosatu spokesman Sizwe Pamla.
Stanlib Asset Management deputy CEO Patrick Mamathuba reportedly told a SA Chamber of Commerce and Industry gathering last week that business was waiting for the right moves from the government to invest the billions of rand.
He said business would help finance infrastructure programmes in partnership with the state.
Read also: Cosatu breathes fire over job losses
Pamla said this statement was puzzling as arguments around the country’s policy uncertainty were a ruse used by market fundamentalists to ensure the government did not interfere in the market.
It also called into question big business's integrity because it had ample opportunity to influence policy.
“On an annual basis, big business enjoys an audience with the Presidency, where such concerns are discussed and there are also ongoing engagements and annual summits at Nedlac [National Economic, Development and Labour Council], where critical policies especially those pertaining to the economy are discussed.
“Big business cannot be allowed to undermine engagements between social partners, the democratic mandate and institutions by squeezing economic activity through the withdrawal of capital from circulation,” said Pamla.
“While , we all need to listen to each other and deal with each other’s concerns, we also need to remember that South Africa is a country and not a casino, where people can just cash in their chips and not care about what happens afterwards.”
Government and business have held a number of high level meetings recently on the country’s sluggish economic growth. While there are claims that these meetings have borne fruit, recent job statistics tell a different story.
The most recent unemployment statistics show 67 000 jobs were lost in the second quarter.
LABOUR BUREAU