Another of Judge Ronnie Pillay’s apparent dislikes is the Coega Project. Among the lengthy list of recommendations contained in Volume 8 is the exhortation to the Eastern Cape not to invest further monies in the Coega Development Corporation at the expense of departments which provide social services to the citizens of the Province.
“If the CDC requires further finance, then Province should seek the same from National Government by means of a conditional grant and/or from Provincial surplus.
“Means to be reimbursed by the Department of Trade and Industry and/or CDC for the R1 billion already invested (plus interest) should be initiated or the Provincial Government should take complete control of CDC.”
- Coega announced earlier this week that six auto component manufacturers were in the process of concluding investment deals worth more than R1 billion with the Coega Development Corporation that will result in a total of 2 530 people employed between July 2008 and mid 2010. The factories are to be located in the Nelson Mandela Bay Logistics Park (NMBLP) in Uitenhage.
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He clearly has not understood things in the bigger context.
there are issues with Coega. But they are bigger than the commission seems to understand. For instance is the creating of IDZs the best way for a relatively poor country to attract investment? What kind of support - aside from some bits of legislation - should the government give to such initiatives.
Clearly the eco development path followed by the national govt was a poor mixture of liberal eco planning with letting the market decide.
They really needed to understand that we should be - esp at this stage of the democracy - clearly focussed on a solid program of state intervention. We are now belatedly doing this.
Funny thing about the commission is that they got some 'civil servants' to try and explain the logic of spending, of priorities etc. they should have got Alec Erwin and his crew in to talk about the IDZs and where they were hoping to take things.
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