Msunduzi Mayor Mzimkhulu Thebolla
Image: Msunduzi Municipality
The business community has warned about the damage being done to business confidence in key economic hubs of the province by organisations affiliated with political parties who are “intimidating” business people.
The Durban Chamber of Commerce and Industry NPC and the Pietermaritzburg & Midlands Chamber of Business have raised concerns about the damaging impact of this activity on business operations and potential investment.
The organisations did not specify which organisation was leading this or which party they are affiliated with. The Labour Civic Organisation (LACO), which is affiliated with the MKP, has shot into prominence in recent times following reports that it had shut down businesses that it suspected of being non-compliant with labour practices. Attempts to reach LACO yesterday were unsuccessful.
In a statement issued by the Durban Chamber of Commerce and Industry CEO Palesa Phili, the organisation warned that while business confidence is already declining, the conduct of these organisations is worsening the situation. It stated that it is aware of groups affiliated with political parties engaging in acts of intimidation and conducting illegal labour inspections at business premises.
“We strongly condemn these actions which undermine the rule of law. We believe that only law enforcement agencies and the Department of Labour have the authority to request records or conduct inspections. We are witnessing compliant businesses being disrupted from normal business activity, and an atmosphere of fear is being created. At a time of already declining business confidence, this has adverse consequences, potentially further decreasing confidence, hampering investment, and causing reputational damage.
“As organised business, we strongly believe that any individual or group who decides to take the law into their own hands must be dealt with. Members who experience such incidents are encouraged to report the matter to local authorities and/or the Durban Chamber of Commerce and Industry NPC,” it said. The Chamber added that it remains committed to working with government and key stakeholders to resolve the matter.
Melanie Veness, the CEO of the Pietermaritzburg & Midlands Chamber of Business, said this was damaging to business and investments.
“Yes, it is happening all over the city and into the Midlands, in Greytown as well. Some local stores were forced to shut for as long as 2-3 days. It’s disruptive and damaging to the affected businesses as well as to the economy.
These politically affiliated organisations claim to be creating jobs for South Africans, but what they’re really doing is damaging the province’s reputation, denting business confidence, and making us extremely investor-unfriendly, which will prevent much-needed growth and cost jobs in the medium to long term, as current investors look to disinvest,” she warned.
The Mayor of the Msunduzi Municipality, Mzimkhulu Thebolla, stated that government and businesses need to work together. “At some point, we met with one of the organisations that was doing this, and we engaged them on how best to resolve the issues they were raising, where they alleged workers were not being treated well and where they alleged that illegal immigrants were employed to do the work that South Africans should be doing.”
The Mayor stressed that they are against any action that harms businesses in the city, pointing out that such actions also harm the city and that they are opposed to such organisations going on inspections and shutting down businesses, as there are state agencies that are tasked with that.
Economist Dawie Roodt said such a situation is really unfortunate, where these organisations take the law into their own hands at various levels, as that is often about illegal immigrants and other issues concerning the treatment of workers. “This is unfortunate as this is not the job of a political party. We have certain institutions that are supposed to be doing that. The main culprit is not the political parties; it is the state.
“People do not have confidence in the state, and that is why these things happen, and political parties see this as an opportunity for publicity and to get people to vote for them. This is bad for business generally,” said Roodt.