Business forum disruption a threat to investment, says Mchunu

No investor will invest in a province where there is lawlessness and rampant crime, says KZN Premier Willies Mchunu. Mchunu’s statement, which he made while he and eThekwini mayor Zandile Gumede were in Shanghai, China, on Tuesday, was a reaction to Durban-based Amadelangokubona Business Forum members disrupting development projects in the city. Members of the group are demanding a stake in government tenders and now, along with other business forums, in major private construction and development projects. According to a statement from Mchunu’s office he and Gumede had to abandon a meeting with Chinese business people who had promised to invest in the province. “They are discussing this matter on the sidelines of the meetings they are attending in Shanghai with potential investors,” read the statement.

The two got the news soon after they had been given an indication that investors were willing to come into the province and Durban to partner with local businesses and set up manufacturing plants. “We fear this will jeopardise our negotiations, further pushing more innocent people into poverty,” Mchunu said. “This conduct of Amadelangokubona is giving KZN companies a bad name... and this has the potential to result in KZN-based companies being blacklisted simply because of a few individuals who are hell-bent on breaking the law,” he said. He said the action by Amadelangokubona would also jeopardise efforts by MEC for economic development, tourism and environmental affairs Sihle Zikalala to promote the development of black industrialists. He said the provincial cabinet had held several meetings with members of the forum, which wanted to be granted government tenders “without following the due supply chain management processes, which is against the prescripts of the Municipal Finance Management Act”.

“These individuals boasted they were hard-core criminals and not scared of being arrested, which nearly resulted in the community losing confidence in the government of the day. “This action reveals the extent to which lawlessness has taken root in some parts of our communities. The people of this province and the country as a whole are at risk of losing their freedom and national security at the hands of unruly elements,” Mchunu said. Businessman and owner of Sibaya Casino, Vivian Reddy, said the disruption had not affected operations at the casino, which he said had nothing to do with the current development. However, he said members of the forum were crying out for opportunities. He said forums like Amadelangokubona should engage with developers instead of disrupting work in progress, “which is counter-productive”.

“It is important to engage through the correct forums. Property developers are here to create jobs and livelihood for thousands of people. Companies should try to make sure contractors are included. On their clauses they should make sure all contractors are BEE compliant, and businesses are encouraged to promote local business development,” he said. President of the Durban Chamber of Commerce, Zeph Ndlovu, attributed the forum’s behaviour to high unemployment, and said the chamber had encouraged its members to create opportunities. “We acknowledge the fact that the country is faced with the triple challenge, which is unemployment, poverty and inequality. “However, we do not encourage any disruptive or militant ways of attracting attention,” he said.