Business welcomes Ramaphosa’s promise to cut red tape

President Cyril Ramaphosa during State of the Nation Address 2022. Photographer Ayanda Ndamane African News Agency(ANA)

President Cyril Ramaphosa during State of the Nation Address 2022. Photographer Ayanda Ndamane African News Agency(ANA)

Published Feb 11, 2022

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The Progressive Professionals Forum has cautiously welcomed the State of the Nation Address (Sona), but says it is very concerned more positions are being created to reduce red tape.

In his address, President Ramaphosa promised the private sector that government wants to cut red tape to make it easier for business to do business.

Ramaphosa announced he had appointed an expert, Sipho Nkosi, to head a team in his office to cut red tape across government.

The PPF said it agrees with Ramaphosa that there are “too many regulations in this country that are unduly complicated, costly and difficult to comply with”, but the forum believed the approach of always appointing or creating a position to tackle a problem is not helping the country move forward with speed.

“The intention to cut unnecessary bureaucratic delays for businesses is welcomed; however, we had descended to a path of forever appointing warm bodies instead of tackling the actual problems. We already have a sizeable Cabinet that should be spearheading such matters,” said PPF president Kashif Wicomb.

Wicomb further said: “We are disappointed that more people are being appointed to reduce red tape, address climate change, agriculture, when we have Cabinet ministers and well-resourced departments who focus on these issues and are paid to do so. The country does not need more committees, more advisers: we simply need implementation of policies.”

Wicomb said it has been six years since the creation of the post of Chief Procurement Officer, but the government has not yet achieved its target of ensuring departments pay suppliers within the required 30 days.

“What this means is that dedicated capacity does not always work. We need political will and binding implementation policies,” Wicomb said

He said the PPF has been advocating since 2019 for the establishment of a state-owned company to ensure extracting shareholder value and to limit political interference, and is happy that Ramaphosa has responded to this call as announced in his address.

Wicomb said as with all holding companies, it will now report to shareholders at regular intervals.

He said this model has been successfully implemented in Singapore and has ensured well-run SOEs that delivers on their mandate and place little to no strain on the State’s fiscus.

“With 700+ SOEs in South Africa, it is long overdue that the state disposes of non-critical SOEs,” Wicomb said.

In last year’s Sona address, Ramaphosa announced the drafting of a dedicated SOE Act.

Wicomb said the PPF has been calling for a dedicated SOE Act, as current legislation applicable to SOEs – such as the Public Finance Management Act and the Companies Act, among others – were in many instances in conflict with each other.

“The PPF will continue to monitor the progress of this announcement and certainly provide input to the draft legislation,” he said.

Wicomb further said the PPF welcomes the professionalisation of the public service – and a partnership between the state and professional associations – to ensure a competent and professional public service.

He said a professional, dedicated public service is the cornerstone of a well-run state.

“We believe that the appointment of senior civil servants must be permanent, not linked to the term of office of the minister, as this will ensure continuity, institutional knowledge being retained even if ministers are changed, and – most importantly – a public service that can provide independent, objective expert opinions to ministries,” Wicomb said.

Wicomb said PPF also welcomes the protection of whistle-blowers who sacrifice their careers and well-being in the interest of the country.

“This is exactly what the PPF has been advocating since the murder of Gauteng Department of Health whistle-blower Babita Deokaran in August 2021. Whistle-blowers are the fine line of defence between those who continually steal from our public coffers and prison sentences,” Wicomb said.

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Political Bureau

Pic supplied : PPF President Kashif Wicomb.

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