Biggest 'red flag' from the State of the Nation Address

Perhaps the most worrying ‘red flag’ arising from the State of the Nation Address is the disconnect between the president’s speech and last year’s Mid Term Budget Policy Speech.

In his SONA speech the president waxed lyrical about society’s gains over the past 30 years of democracy, but he was ominously silent about the clear objects set out in the 2023 MTBPS, namely:

• the protection of vulnerable households,
• stabilising debt and debt service costs via fiscal consolidation, and
• tax revenue enhancing economic growth.

Ramaphosa also failed to detail the interventions needed to improve the capabilities and efficiencies of the state, in particular in relation to wasteful expenditure and corruption.  

These omissions are telling, particularly when you consider that the president gave a detailed account of how his government is dealing in multiple other issues contributing towards the country’s current downward trend. Although reference was made to the era of state capture, what was missing was accountability, a clear mea culpa acknowledgement of who is to blame for this disastrous state of affairs, which continues due to a combination of corruption and key leadership appointees (political and administrative) without due consideration for public service skills or integrity.

Furthermore, no mention was made of the Zondo Commission and the steps necessitated to effect its recommendations.

There was a glaring absence of detail about who will drive the various remedial steps cited in the president’s speech. Instead we got vague references to some advisory or working group, meaning that responsibility and accountability is apparently vested outside of the public service, i.e., not in the legally charged minister and his/her head of department or board as the case may be.

Mr President, it is what is left unsaid that sometimes speaks the loudest. 

John Lawson
CEO of the Cape Chamber of Commerce & Industry