Eskom probe, Denel pit ANC against Gordhan

Finance Minister Pravin Gordhan. File picture: David Ritchie

Finance Minister Pravin Gordhan. File picture: David Ritchie

Published Sep 11, 2016

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The battle for the control of the Treasury spilled over into Parliament this week with ANC MPs launching blistering attacks on the Treasury and Finance Minister Pravin Gordhan.

In one such attack against key Treasury officials, ANC MPs accused chief procurement officer Kenneth Brown of undermining Parliament after he failed to show up for a meeting with members of the standing committee on public accounts (Scopa).

Officials from his office said he was attending a conference in Europe, but ANC MPs in Scopa had none of it, saying that he was ill-disciplined.

Brown is at the centre of investigations of Eskom’s coal contracts with the Guptas. This week, Gordhan came to the defence of Brown in the National Assembly, during question time to ministers, for saying Eskom chief executive Brian Molefe was a liar.

This was in relation to Molefe’s claim that the state-owned utility was co-operating with the Treasury on its investigations into the coal contracts with Tegeta, a Gupta-owned firm.

The Eskom contracts with the Guptas is one of the battles Gordhan has been fighting with state-owned entities in recent weeks. He told MPs the Treasury would not back down in investigating the Guptas or anyone involved in corruption.

In the portfolio committee on public enterprises, the ANC gave its backing to Denel after it allowed the arms manufacturing firm to continue with its presentation on its R400 million joint venture with the Guptas without the Treasury or the finance minister.

This was in spite of opposition by the EFF and DA that the meeting be rescheduled to allow Gordhan and the Treasury to be present.

Gordhan has refused to endorse the deal to the anger of Denel. The meeting almost led to fisticuffs between the ANC and EFF MPs, and the latter said it would not be part of a meeting where state resources were looted while the DA said the opposition party would not be party to a cover-up at Denel.

This led to the two opposition parties walking out, leaving the ANC in the chamber to listen to Denel.

Denel bosses accused the Treasury of frustrating the company for refusing to approve the deal. The arms manufacturer defended the deal that it was above board, noting that it was denied an opportunity to score on a lucrative route in Asia.

But Gordhan has stuck to his guns and refused to give the go-ahead to the deal with VR Laser South Africa, a company owned by Guptas-linked Salim Essa.

Gordhan made it clear this week that the Treasury would not be intimidated by anyone in executing its duties to look into impropriety in state contracts.

The Guptas have denied any wrongdoing and this week published their company's results, saying government business generated only 9 percent of their total revenue.

Political Bureau

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