Madam Deputy Speaker, the current amendments to the Minerals and Petroleum Resource Development Act, MPRDA, follow amendments to the Act which were passed in 2008 and signed into law only last year, five years after its passing. This indicates the level of indecisiveness and uncertainty of the ANC-led government, the Department of Mineral Resources, and more importantly, the President, in determining whether the decisions taken by this Parliament are beneficial to the mining industry and the South African economy.
Numerous concerns raised by many NGOs, mining houses and communities, as to the problematic impact of the Bill on the nascent oil and gas industry and the mining regime, were mostly ignored as was the case in 2005, with the passing of the Diamond Second Amendment Bill. This Bill caused thousands of job losses; the relocation of the sorting house of De Beers from London to Botswana, whilst it should have been relocated to South Africa, had this ANC-led government not rushed through that disastrous Bill.
Whilst the constitutionality of this Bill is questionable, it is the consequences of the Bill in the oil, gas and mining industry which is at stake. The South African petroleum, gas and oil organisation, whose members are multinational companies, in a statement on Monday, warned government of the negative impact this Bill will have on the industry. But to no avail. It has fallen on deaf ears as much of the ANC-led government decided to deliberately ignore diamond companies when they raised concerns in 2005, causing the Minister to recently acknowledge the failure of the State Diamond Trader and the negative consequences of the Bill. We find ourselves in the same position again.
To indicate the mala fides of this ANC government in its dealings, with regard to this Bill, it initially contained a clause which allowed for a 20% free carried interest - read free shareholding - as well as state entitlement to acquire, at fair market value, up to 20% shareholding of oil and gas companies. To the amazement of everyone - except of course the ANC members - this clause was hastily changed on Thursday night to allow this government to effectively nationalise oil and gas companies at any point in future as it changed the 20% capping on state entitlement to a 100% entitlement at an agreed price and not at fair market value as it read before. Except for the fact that the industry was not provided with an opportunity to comment on the ability of the state, through its entitlement to an unlimited share of private business ownership at a price which will inevitably be forced on them by government at a so-called agreed price, this clause does exactly what an expelled previous president of the ANC Youth League is attempting to do to gain entry to this Parliament, this time with the aide and assistance of the ANC. It seems that the ANC is turning into an Economic Freedom Fighters, EFF, lite party in fear of the Malemas of this world. [Applause.]
The unfettered discretion of the Minister to prescribe purchases, conditions for the allocation of the mineral rights and timeframes is in all probability contrary to the Constitution in that the Minister is allowed to rule by means of autocratic decision making without having to consider the advice of any other stakeholder. Despite considerable representation to the committee, the proposed amendments still fall short of requirements for consultation with the public in the process of granting rights as determined in the Bengwenyama Constitutional Court case. Most concerning, is the unfettered interference by the Minister in the realm and affairs of private businesses and decision-making to the extent that the Minister will be able to designate certain minerals which will be subjected to stringent conditions relating to exporting and pricing thereof.
The flawed consultation with stakeholders; the mala fides clearly displayed by the ANC in the committee; the more than 30 unbridled discretions awarded to the Minister; the nonexistence of substantive debate but rather a mere cacophony of agreement by ANC members; a committee report that deliberately does not reflect the DA's objections; the incorrect tabling of the Bill; and, more importantly, the unconstitutionality of certain provisions of the Bill, makes it impossible to support this Bill. Thank you very much. [Applause.]