In a mirror of events during the dying days of apartheid when a big business stuck its corporate neck out and complained about poor political leadership, Nedbank chairman Reuel Khoza has put the cat among government pigeons by decrying “a strange breed of leaders” in South Africa who were determined to undermine the rule of law
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Khoza, who is a former Eskom chairman, and was known to be heavily politically connected to the ANC during president Thabo Mbeki’s reign, came out with guns firing in the Nedbank annual report.
He told shareholders in no uncertain terms that these leaders were determined to undermine the constitution.
“Our political leadership’s moral quotient is degenerating and we are losing the checks and balances that are necessary to prevent a recurrence of the past,” he said.
His remarks followed recent moves from the government to reassess the role of the Constitutional Court and apparent meddling from the presidency in the lifting of the suspension of crime intelligence boss Lieutenant-General Richard Mduli.
Murder and corruption charges against Mdluli were mysteriously withdrawn while he is being tipped to be appointed as the national police commissioner.
Khoza, who declined to comment further yesterday, said in the report: “This is not the accountable democracy for which generations suffered and fought.”
The integrity, health socio-economic soundness and the prosperity of South Africa were, he said, the collective responsibility of all citizens, corporate and individual.
“We have a duty to build and develop this nation and to call to book the putative leaders who, due to sheer incapacity to deal with the complexity of 21st century governance and leadership, cannot lead.”
Pressed on whether his comments would not be bad for businesses, such as Nedbank, Thulani Sibeko, the group executive for group marketing, communication and corporate affairs at Nedbank said: “Dr Khoza is passionate about ethical leadership in the public and private sectors.
“He has spoken along similar lines in several forums and in books he has authored over many years, and the statements draw attention to the collective need to protect and defend the country’s constitution.”
It is not clear how large the government’s business is with Nedbank and Sibeko did not refer to this in answering questions.
Cabinet spokesman Jimmy Manyi said he could not comment, as it was not clear which political leaders Khoza was referring to.
However, he said: “On top of the mind of (the) government at this point is the big challenge facing the country… of unemployment, poverty and inequality. The infrastructure rollout programme is the step to try and address these challenges.”
When ANC general secretary Gwede Mantashe was asked yesterday to comment at a press conference about party matters, including discipline and leadership speculation by the ANC’s top six leaders including President Jacob Zuma, he said Khoza “had two deals fall through under his watch… he can’t tell (the ANC) about leadership”.
It is not clear whether that referred to his stint at Eskom. Mantashe said Nedbank must focus on business, not politics.
Banking Association chairman Cas Coovadia welcomed the remarks by Khoza.
“Reuel is recognised by most people in South Africa for his integrity… for being a pragmatic and balanced person. Now the fact that he has said that… is not bad for business. We should have an environment where business (leaders) and other stakeholders make constructive (statements), speak their minds without having to fear any repercussions.”
He acknowledged that business faced policy uncertainty in the country. “Government needs to provide leadership to ensure that we have appropriate policies to address the multifaceted challenges we face from a business point of view, to enable business to conduct itself in a way that the economy creates jobs. I don’t think it is a problem to have good, open and constructive debate.”
Cape Town Chamber of Commerce and Industry president Michael Bagraim said it was wonderful to find someone “who is prepared to talk truth to power… he deserves a medal”. He agreed that the section nine institutions – those that form a check on government – were being undermined “at every turn”.
Bagraim believed Khoza was making a statement because things in the country were beginning to fall apart and there was not a recognition that in the absence of the rule of law, there could be anarchy.
He noted the chief executive of Barclays Bank South Africa, later to become FNB, Chris Ball, had criticised then apartheid President PW Botha and Botha had come down on him like a ton of bricks. But Ball had been proved right and apartheid collapsed.
Ball, however, resigned as managing director in 1989 after a public bruising by a Botha-appointed commission of inquiry, which probed whether the bank had ironically supported the then banned ANC. Ball was part of a business delegation that held talks in 1985 when the ANC was in exile.
Donwald Pressly with additional reporting by Shanti Aboobaker