Public Enterprises Minister Pravin Gordhan’s urgent and decisive interventions to restore the failing state-owned enterprises has been applauded from all quarters.
In Parliament on Tuesday, Gordhan said he would work to “recapture” South Africa’s debt-laden state-owned companies after years of looting of billions of rand by politically connected businessmen.
This included appointing Jabu Mabuza, Telkom chairperson and president of Business Unity SA, as the Eskom board chairperson; and former Land Bank chief executive and Absa capital executive Phakamani Hadebe as Eskom’s acting group chief executive.
Former North West premier and Struggle activist Popo Molefe is now chairperson of the interim Transnet board.
Molefe will be joined on the board by Louis Zeuner Ramasela Ganda Ursula Fikelepi Edward Kieswetter and Dimakatso Matshoga.
Gordhan yesterday ex-
plained that the failure of the Transnet board to act on damning findings of a report by law firm Werksmans was among the reasons for this week’s removal of the three remaining board members.
The Werksmans report was clear on what the Transnet board needed to do following its controversial R54.5billion locomotives contract, the minister pointed out.
With the new boards in place, there has been a revolving door of executive resignations, mostly citing personal reasons and with immediate effect.
Arms manufacturer Denel’s chief executive Zwelakhe Ntshepe resigned with immediate effect this week. The board has appointed the chief executive of Denel Aeronautics Michael Kgobe, acting group chief executive in the interim.
In his 2018 State of the Nation Address, President Cyril Ramaphosa called for immediate action in the state-owned enterprises that were experiencing “severe” governance and financial problems.
Political analyst Thabani Khumalo said he had expected radical and urgent changes from Gordhan since his appointment in February.
“Huge damage has been inflicted on the SOE sector over the past nine or 10 years. It has just been disastrous.
“The sector was almost non-functional and it desperately needed an urgent and decisive response.”
Khulamo said the SOEs needed somebody who was aggressive in their approach to restore their viability. “Gordhan is definitely the right person for the job. He is bold, brave and decisive, and that is what was needed to save the situation.”
He said the resignations of senior executives at the SOEs displayed the sense of fear that has filtered through since Gordhan’s arrival.
“His no-nonsense approach and clear strategy are enough to make those who felt uncomfortable jump ship before the axe fell on them.
“They can see they are no longer relevant and the agenda has definitely changed.”
The chief executive of the crime-fighting team at the Organisation Undoing Tax Abuse, Wayne Duvenage, yesterday tweeted: “We commend Pravin Gordhan on an excellent Department of Public Enterprises budget speech and his clear intentions to undo state capture, and return SOEs to credible, profitable entities. It is much appreciated.”