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The DA's Emma Powell doesn't get Richard Poplak

Emma Powell doesn’t get Richard Poplak’s assessment of the DA in Daily Maverick. He did not comment on their governance in Western Province and Cape Town per se, which the IRR’s CEO Frans Cronje called a well-run bubble based on isolated examples, ironically, one was the police, a national competence.

Poplak detailed, in his wordy style that’s not to everyone’s taste, how the DA gutted their hitherto liberal values, most of it under Helen Zille’s leadership, and their right-of-centre shift. Even erstwhile DA supporter RW Johnson thinks so (see here).

But Powell’s response is about the metrics, as she understands it, of good governance.  She doesn’t answer Poplak except saying he doesn’t understand internal DA politics.  It’s the card hustler’s trick of misdirection.

To be clear, the DA is better, if not far better, than the ANC. But that’s only because the ANC is negligent, incompetent and corrupt and set a low bar. The fact is any political party can and has done a better job. In Cape Town after 2006 and other cities after the 2016 elections the DA were in coalition with other parties.  They did not run those cities on their own but Powell claims all the credit for the DA, at least in Cape Town after it absorbed the ID (no word about troubled coalitions in other cities).

And like other politicians, she misunderstands and overstates the importance of clean audits – the Western Cape and city governments’ pride and joy. 

The objective of an audit is to express an opinion on the financial statements, not on management's decision-making prerogatives, service delivery and other aspects.  A clean audit, i.e. financially unqualified and not deviating from performance objectives and legislation, is fairly easy to obtain provided the organisation obeys management’s accounting policy, which the auditor is not responsible for.  That there’s self-praise for doing what they ought to indicates the low standards and misunderstanding of good governance. Ironically, more than once former premier Helen Zille infamously wrote (including in her Daily Maverick column) the internationally based system of public audits should be changed because it was a problem and inconvenient to her government.

A clean audit is not a guarantee of good governance, though.  Financial management is only about seven out of eighteen governance indicators. The country including Western Cape and arguably City of Cape Town continuously fails in the remainder which includes promotion of administrative justice and ethics.

The other problem is Powell repeats the unverifiable claim that unemployment (broad definition) in the province is lower than nationally solely because the DA is allegedly “creating” “new” jobs.  She doesn’t use those words, but at various times Zille, former leader Mmusi Maimane (see here and here) and MP Geordin Hill-Lewis have. 

Note since last year they changed from quoting the official unemployment rate to the broad definition because Limpopo’s and Western Cape’s official rates have been neck and neck for a while, coincidentally after I brought it to their attention.  For the third quarter 2019 the former’s is 21.4% (expanded 41.9%) and latter’s 21.5% (24.5%). The official statistic is used in all official announcements, a practice the DA spurns to gain a modest, empty “win”, like beggars arguing over who’s poorer.  At 29.1% unemployment has risen to its highest yet, the ninth highest in the world, pulling provinces with it.  No amount of DA (and ANC) posturing can mitigate that unpalatable fact.

In February this year I emailed Hill-Lewis asking for the authority for the job claims he made in a speech to the National Assembly on February 13 wherein he extolled their virtues. Then he said:

“Where the DA governs, jobs are created. In the 10 years of DA government in the Western Cape, job growth has been triple the next best province. That equals 640 000 [note at different times they quoted different figures] new jobs, more than the entire population of Mangaung, in new jobs. Unemployment where we govern is 14% points lower than the rest of the country.  Out of all the jobs that were created in the whole country, 53.3% are from the one place where the DA governs.”

He replied attaching a Western Cape government “brochure”, which in fact was a Powerpoint presentation, where he said he got the figure and its source.  Its title is “Thanks to you, we are better together”, subtitled “10 years of good governance together” dated 31 January 2018, “Premier H Zille”.  However, to the jobs figure(s) in question, no authority was identified although for others’ StatsSA were.

Inter alia he wrote, “The DA are not entrepreneurs, and only entrepreneurs create new jobs. But we do claim credit for working hard to create an environment in which it is easier and more favourable to create jobs”.  This contradicted his “where the DA governs, jobs are created” speech, though.

I contested their positive interpretation of jobs figures particularly that StatsSA doesn’t use “created” or “new” in their Quarterly Labourforce surveys. He accused me of “wilful misinterpretation” and that I’m “out to make a point”, which I was, i.e. for the facts.  He ended his side of the communication. 

Incidentally, to my question about the increase of public sector workers in the Western Cape from 2009 to 2019, he said they have statistics, which he didn’t provide, but the increase was not as fast as nationally.  He didn’t have figures for national government and state-owned entities, though, so how could he compare? 

Public sector workers are not economically productive, and we should not take the DA’s unverified word that growth in that sector in the Western Cape is not proportionally as significant as the rest of the ANC-run country.  Hill-Lewis’ replies indicated their misunderstanding and confusion about macro-economics, which is a concern for a party that claims they do it better. (He’s now the DA’s finance spokesman.)

Powell, as Hill-Lewis (Maimane, Zille and Western Cape government didn’t reply to my same  questions) did, demonstrates DA members are still repeating, and in Parliament where it’s prohibited, unverified information using another DA politician – Zille – as an authority, confirming each other’s biases.  I call this the “Oracle Helen” factor, i.e. if the Oracle says so, it must be true.

While Hill-Lewis, under pressure, was right to retract/modify his earlier statement (in Parliament) and tell me they don’t create jobs but only enable the environment, that wasn’t what he, Maimane, Zille’s presentation and now Powell meant or implied.  What does Powell’s statement “Employment grew by 24.8%, and the Western Cape obtained the lowest unemployment rate in the nation at 14% [sic]” mean if not what she intends it to mean? 

She writes further: “While national government continued to systematically chase away foreign direct investment, with direct consequences for the country’s poorest citizens, during Zille’s tenure more than R100-billion was invested into the Western Cape as a result of foreign direct investment, creating more than 19,000 jobs.”  Only 19 000 – where are the 640 000 or 487 000 Hill-Lewis and Maimane respectively claimed? 

And anyway, Gauteng is still the country’s economic engine.

South Africa is a unitary state.  Economic policy is created by national government.  While regions and cities can and do promote investment, typically its success is tied to investors’ perceptions and the facts of the national macro-economic and business environment.  While the Western Cape, like other provinces, has comparative advantages, its growth and other economic indices are linked to the country’s which has been in decline since 2011.  The Western Cape Treasury’s annual report confirms the province’s economic position.  So any statements to the contrary are suspect.

Powell and her colleagues are either deliberately making false statements about the DA-run province’s alleged remarkable economic prospects vis-à-vis the country as a whole, or like the ANC, they’re ignorant about macro-economics.

And they’ve learnt nothing from Zille’s and Maimane’s mistakes and the recent fallout.  That’s another thing we can take from Poplak.  Powell’s response proves it.

I sent the above to Daily Maverick's managing editor Janet Heard as a reply to Powell. They did not publish, as they have not any of the numerous others I've sent (see here and here for recent ones). They claim they invite letters, contributions and right of replies but don't. Recently Heard has not even acknowledged my emails as she has before. I gather I'm persona non grata.

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