Business Report writes that Joel Netshitenzhe says a major weakness of accountability by mines relates to the extent of co-operation between the mining houses and various spheres of government.

There should be tighter systems and structures of accountability in the implementation of social and labour plans, according to Mapungubwe Institute for Strategic Reflection (Mistra) executive director Joel Netshitenzhe.

Netshitenzhe, a member of the ANC national executive committee and a former top civil servant, said last week that it was one of the lessons from the 2012 Marikana tragedy, the 2014 platinum strike, as well as social instability in mining areas related to community infrastructure development, the living-out allowance and related practices.

“While many mine operators have allocated resources for community development, a major weakness relates to the extent of co-operation between the mining houses and various spheres of government,” he noted.

He said mining companies should be actively involved in the conceptualisation and implementation of municipal and provincial development strategies and plans.

“Systems and structures of accountability to communities need to be improved and should involve the highest levels of the companies,” said Netshitenzhe.

His comments are contained in a paper on mining. The paper, which Mistra released on Friday, deals with the role of mining in the attainment of the goals of the National Development Plan.

The NDP’s goals include reducing unemployment to about 6 percent and reducing income inequality as measured by the Gini co-efficient from 0.69 points to 0.6 points.

“The core argument is that the collective of partners in mining – private companies, workers, mining communities and the state – need to develop together a vision and a programme that aligns with the objectives of the NDP,” said Netshitenzhe.

He said mining could serve as a catalyst for an industrialisation drive, a skills and technological revolution “and, broadly, as a bedrock of societal efforts to deal with poverty and inequality”.

He questioned the mining industry’s transformation track record, saying it had made insufficient progress in relation to ownership, management and board composition.

He said the Mining Industry Growth, Development and Employment Task Team – a government, labour and business initiative mandated to, among others, develop interventions that will position South Africa’s mining industry for sustainable growth – had identified weaknesses in mining’s transformation policies.

These included inadequate focus on share ownership by workers through the so-called employee stock ownership plans.

“Reckless as some of the decisions by the previous minister of mineral resources (Mosebenzi Zwane) appeared to be, as reflected in both the content of, and process around, the 2017 draft Mining Charter, they are impelled by palpable impatience among various strata within the black population.

“Perceptions of opportunism and unethical behaviour on the part of specific government actors should not detract from the factual reality that breeds such impatience on the issue of ownership,” said Netshitenzhe.

This report by Siseko Njobeni appeared on page 15 of Business Report of 21 May 2018

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