In the Frankfort Herald of January 12, 2024, there was a report about Prof. Anthony Turton from the University of the Free State, who expressed his displeasure about cadre deployment in the water sector. Turton's comments echo those of the chairman of Social Security Systems Administration and Management Studies (SEB) at Wits, Prof. Alex van den Heever, who said that cadre deployment causes systemic failure. "The problem with the cadre deployment policy and the way the BEE framework has been handled is that it generates systemic failures of management. These systemic failures don't just go away," Van den Heever said. The management failures have significant effects on the country's economy, with an estimate that South Africa has lost between 30% and 40% of its potential Gross Foreign Product (GDP) through this policy. "Much of our unemployment and inequality can be explained by this policy. Cadre deployment as a policy does not fit the South African context and the South African Constitution," said Van den Heever.
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The professor emphasized that what has been implemented does not really empower people. Instead, it has created middlemen who do very little and add no value to society or the economy. These middlemen increase the cost of basic services without any additional benefit to the consumer and the wider society. If services are provided, it is often over budget and only after significant delays. "It was essentially driven by individuals who tried to divert money to themselves and friends rather than to develop South Africa. You cannot create these loopholes and gaps in the public service and state to pursue that goal."
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The most important factor needed to make the South African economy more inclusive is not an implicit model to promote transformation – it is economic growth. "What we had to do was expand the economy. By expanding the economy, we would have systemic transformation across the country," Van den Heever said. "What we did instead was to destroy value on a large scale plain. Unfortunately, this puts the entire South African society at risk."
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