MIDRAND

Tue Jun 28, 2011 10:16am By Epuel Paski
MIDRAND (Reuters) - Calls to nationalise South Africa's mines by factions in the ruling ANC are a front to bail out struggling black-owned companies, Communist Party boss Blade Nzimande said on Tuesday.
The radical Youth League of the ruling African National Congress is pushing for mine nationalisation, unnerving investors in the world's No. 1 platinum producer, but President Jacob Zuma's government insists
it is not government policy. "The call for nationalisation by elements within the ANC Youth League, is to save the black economic empowerment elements in crisis, and not to address the interests of the workers and the poor," Nzimande said at a strategy meeting of leaders affiliated to the Congress of South African Trade Unions (COSATU).
"Ten years from now, they will be calling for privatisation, after the state has inherited the debt," he added.
COSATU and the Communist Party were instrumental in Zuma's rise to power but have been largely unimpressed by his indecisiveness and by corruption within his administration.
Political labels have been rendered topsy-turvy by struggles for spoils and power within the ANC. The Communists are opposed to nationalisation, at least publicly, on the grounds it would promote cronyism without tackling poverty. Unions oppose it as they see it threatening investment and jobs. The Youth League's drive for nationalisation is seen steered in part by stealth-capitalists who could benefit from it.
The ANC elects a new leader next year and Zuma's only chances of retaining the top post rests with the renewed support from his communist and union allies.
Zuma has alienated popular ANC Youth League leader Julius Malema and the millions of poor and disenchanted youngsters he represents by dismissing their drive to get nationalisation accepted as government policy.
Sources in the ANC have said that Malema and the pro-business faction he represents, some who will benefit from nationalisation, want Zuma replaced by a leader who will be more sympathetic to their demands which include seizing white-owned farms without compensation.
On Monday Zuma opened the four-day conference warning union leaders not to overstate their role and make undue demands. COSATU said that Zuma cannot take its support for granted and is likely to wring policy concessions in return for support.