- Bonang has attacked and singled out Jacob Zuma for his reported plan to capture Treasury
- Mohale says the government portrays business as the enemy
- Presidency says Bonang's claims are ridiculous as the president can't capture an institution that he leads
Bonang Mohale, Business Leadership SA CEO, has launched an attack on the government and has singled out President Jacob Zuma out for his plan to capture the Treasury.
Mohale was speaking at Monday release of a report directed at exposing perceptions of an investment strike in the country.
"Business was remiss to move away from the public debate just because we had a saint, Nelson Mandela, as president. That is why the country is captured. Business has found its voice and it’s using its resources to defeat state capture," he said.
Quantech undertook the report and it showed that 57 of BLSA’s 77 member companies, under which Telkom, TFG and MTN had supplied almost R2 trillion to GDP last year. GDP growth for the year was a measly 0.3%.
He said that the report was in response to the government’s description of business as the enemy.
We are puncturing the inflated fallacy that business is on an investment strike. We are quantifying our members’ activities and their contribution to the GDP," Mohale said.
The report showed that the contribution of the 57 members was 1.2 times the amount of the total budgeted expenditure by the government last year.
The Presidency has however denied the claims that Zuma is trying to capture the Treasury.
Briefly.co.za learned from BusinessLive that Bongani Ngqulunga, Presidency’s spokesperson, said that the Treasury was an important part of the government that Zuma had been leading for the past 8 years.
He said that claiming the president was attempting to capture a department that he was in charge was ‘bizarre’.
Economists indicate that investments have decreased significantly in the last couple of years , which suggests that companies had shifted their focus from South Africa.
Jeff Schultz, BNP Paribas economist, said that a weak economic environment and political uncertainty are the main reasons corporate are hesitant to invest.
Schultz says growth has slipped under 1.1% and that the problem isn’t that people aren’t investing, it’s that the pace isn’t keeping up.
Do you have a story to share with us? Inbox us on our Facebook page and we could feature your story.