Give us our pound of flesh – A

Image:PBF

Give us our pound of flesh – ANC business unit demands its cut of vaccine supply contracts

Unconfirmed reports said ANC President Cyril Ramaphosa reportedly told the party’s top six and Progressive Business Forum representatives last week, that the rollout of vaccines in the country would provide an ‘opportunity for black empowerment.’

Give us our pound of flesh – A

Image:PBF

The ANC’s business wing, the Progressive Business Forum (PBF), is jostling for its members who help fund the party to secure a cut of the contracts for the vaccine supply chain, according to the Business Maverick.

The PBF reportedly met with the ANC’s top 6 two weeks ago to lobby for a cut of the logistic contracts for the coronavirus shots.

The publication reports that the first campaign of the PBF in the new year was to aggressively lobby for a slice of the vaccine contracts.

The first 1m vaccines arrived on Feb.1 and there is already a vaccine business race, similar to the frenzied dash to supply personal protective equipment (PPE) masks and sanitizers as well as medical goods and services.

TSA reported that this quickly morphed into the COVID-19 PPE scandal in which R7.5bn was lost to irregular spending, according to the Special Investigating Unit (SIU).

R12bn budgeted for vaccine dose plan for 2021

The first three phases of the 40m vaccine dose rollout for 2021 is budgeted at R12bn, according to Business for South Africa.

On Feb. 7, Government published its budget estimations for its vaccination programme, with an initial target of R20.6 billion for the 67% coverage planned by the end of the year.

For 100% of the population, the budget is estimated at around R30 billion with the National Treasury raising the possibility of a tax increase to cover some of the cost.

The PBF is the ANC’s main fundraising wing and it bridges the business community with the governing party through a system of memberships.

The memberships range from R3,500 a year (Silver) to R65,000 annually (HON) and offer access to ministers, tailored engagements with policymakers, and the ability to “give input” into policymaking workshops.

Business opportunity or dirty dealings

Asked whether the vaccine drive should be a business opportunity rather than a national project of public good done voluntarily, Kganki Matabane, the CEO of the Black Business Council said their approach is based on business principals.

“I fully agree with the sentiment, but nobody renders a service for free. People took advantage of there not being processes (in the PPE purchases by the state), but now procurement is being centralised.”

While Broad-Based Black Economic Empowerment (BBBEE) is a constitutional policy that has benefited South Africa, Business Maverick notes that the companies and individuals that racked up R7.5bn in dirty PPE deals used the guise of the policy to win contracts.

Investigations by the SIU and the auditor-general from September 2020 revealed that collusion with procurement officials led to the government overpaying by between double and five times the going rates for goods and services.