BUSA and BLSA react to Phala Phala Farmgate Scandal

BLSA said on Thursday that it has been dedicated to supporting the restoration of the rule of law in South Africa and that has been illustrated by the significant amount of resources and support that BLSA has spent in this regard.

BLSA said on Thursday that it has been dedicated to supporting the restoration of the rule of law in South Africa and that has been illustrated by the significant amount of resources and support that BLSA has spent in this regard.

Published Dec 1, 2022

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As the country and markets continue to absorb the news from the Phala Phala report, released by an independent panel, business lobby groups in South Africa, Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA) have reacted to the report.

Many in the country was expecting President Cyril Ramaphosa to address the nation on Thursday evening, but in a surprise move, the Presidency announced that Ramaphosa will not address the nation tonight, saying that the president is not in the least perturbed by mounting calls for him to step down following the release of the Phala Phala report.

BLSA said on Thursday that it has been dedicated to supporting the restoration of the rule of law in South Africa and that has been illustrated by the significant amount of resources and support that BLSA has spent in this regard.

“The Section 89 Independent Panel appointed by Parliament to investigate the conduct of President Cyril Ramaphosa has done its work without fear or favour. This is a positive sign of the health of our democracy and its institutions, and we welcome the report. We note its findings that the president may have violated certain parts of the constitution and a section of the Prevention and Combatting of Corrupt Activities Act,” BLSA said in a statement.

“However, we see it as highly positive that the appropriate steps have been taken to investigate allegations. It is now important that our institutions are supported in concluding investigations and if appropriate further actions are taken to prosecute or otherwise impose appropriate consequences without fear or favour. We would also like to call on all the other organs of state who are working on this matter to conclude their processes and come forward with their findings,” BLSA further stated.

“We have seen significant progress from rebuilding the prosecuting authorities through to the governance of state-owned enterprises. This remains a work in progress. The conduct of the president is important in this regard and we expect the President will be committed to working with the relevant authorities to enable their investigations. It is critical that the rule of law is upheld and justice prevails. We fully support the call by the panel for appropriate investigation to be undertaken by the appropriate authorities,” BLSA said in their statement.

Meanwhile, BUSA said it has noted with serious concern the contents of the report.

“This is a significant crisis for our country and poses high risks that will see further erosion of confidence and will increase an already unstable political climate, particularly in the run-up to the ANC Electoral Conference in December,” BUSA said.

“Our country can ill afford further erosion of confidence and instability, at a time business is committed to devote resources and capacity to work with government to address numerous crises in SA. Business needs policy and political certainty, with a capable government that can fulfill its governance role ethically and efficiently. All of this has been lacking in SA and ongoing efforts to address these will be negatively impacted by the uncertainty and crisis created by the contents of this report,” BUSA said in a statement on Thursday evening.

“Business believes in the potential of our country and our people. We urge our leaders to be statesmanlike during this time of uncertainty and avoid actions and narrative or rhetoric that is harmful to the country. While the appropriate way forward is being considered, whatever it may be, business urges leaders in government to put the country first and not act in self-interest,” BUSA further stated.

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