The Department of Public Enterprises (DPE) has confirmed Minister Pravin Gordhan’s intention to retire from active politics following the upcoming elections.
However, the official opposition DA accused Gordhan of failing to effectively address corruption and mismanagement within state-owned-entities (SOEs).
Gordhan has served in various critical leadership roles in government for the past 30 years. This culminated in his tenure as the head of the DPE since 2018.
Smooth transition process
The decision, according to the DPE, is aimed at ensuring transparency and initiating a smooth transition process. This is for both the minister and the department, as is customary at the end of each administration.
“This announcement is emblematic of the minister’s desire to be candid. It is so that all critical constituencies that relate to his current portfolio are sufficiently informed of his plans.
“Secondly, the announcement is intended to set in motion processes to ensure a smooth transition for the minister and the department… This is often the case at the end of every administration,” the department said.
Trail of destruction in the SOEs
Reacting to the announcement on Friday, the DA criticised Gordhan’s tenure. It alleged that he leaves behind a “trail of destruction” in the SOEs sector.
DA MP Mimmy Gondwe lambasted Gordhan for failing to address corruption and mismanagement within SOEs.
Gondwe highlighted Gordhan’s handling of Eskom, pointing to allegations of deep-seated corruption within the entity. She accused the minister of prioritising political allegiance over accountability. Gondwe also criticised Gordhan for his reluctance to disclose details of the SAA/Takatso deal, citing concerns over transparency and parliamentary accountability.
Tax-payer funded bailouts
“Under Gordhan’s tenure, SOEs have become chronically dependent on taxpayer-funded state bailouts to remain in business. Of the R331-billion that has been spent on SOE bailouts since 2013/2014 financially, R213-billion has been spent since 2018.
“This was when he was appointed Minister of Public Enterprises. Gordhan himself confirmed that taxpayers have only been able to realise R1-million in dividends. This despite these multi-billion rand bailouts,” she said.
Gondwe further cited the minister’s collaboration with the ANC’s cadre deployment committee. The MP argued that this undermined efforts to combat corruption and improve governance within SOEs.
Cadre deployment
“For a man who positioned himself as a crusader against state capture, his continued deference to the ANC’s regressive policy of cadre deployment exposes his insincerity in the fight against corruption. Gordhan proactively worked together with the ANC’s cadre deployment committee to interfere with board appointments at Transnet, Denel, SAA, and SAFCOL.
“He has himself to blame for choosing to be an ANC lackey rather than a principled public servant for the greater good,” she said.
