Defend Truth

ANALYSIS

Pravin Gordhan’s rough ride from anti-corruption hero to being an integral part of SA’s problem

Pravin Gordhan’s rough ride from anti-corruption hero to being an integral part of SA’s problem
Public Enterprises Minister Pravin Gordhan in Johannesburg, South Africa, on 29 November 2016. (Photo: Waldo Swiegers / Bloomberg via Getty Images)

Public Enterprises Minister Pravin Gordhan recently proclaimed that SAA was rising ‘from the ashes like a phoenix’ and that the airline’s deal with the Takatso Consortium was close to being finalised. But at stake is more than just the future of an airline that has cost the government billions — Gordhan’s very reputation is on the line.

While he was hugely popular with the middle classes as the most visible public symbol of ANC resistance to then president Jacob Zuma, Public Enterprises Minister Pravin Gordhan’s image has changed significantly since those dramatic days.

It’s difficult now to remember how important Gordhan was in the fight within the ANC, in the congress movement and in society generally to remove Zuma from power.

After Zuma overreached by removing Nhlanhla Nene as finance minister in December 2015, the rand lost value overnight, shares on the JSE fell off a cliff, and the ANC famously failed to congratulate Nene’s successor Des van Rooyen.

Just hours before markets were due to open in Asia on the Monday morning following Van Rooyen’s appointment, the ANC went into damage-control mode. As it is now understood, Zuma was convinced by ANC leaders that Van Rooyen could not stay in office and there was an urgent search to find someone who could calm the markets.

In the end, it was then Deputy President Cyril Ramaphosa who phoned Gordhan to ask him to take the post.

In the months after that, it became obvious that Zuma was persecuting Gordhan. Zuma’s agents in the Hawks and the National Prosecuting Authority (NPA) charged Gordhan with fraud (even the NPA head at the time, Shaun Abrahams, realised the charges could not stand up), and tried to limit his movements.

Analysis: Dizzy days at State Capture central

When Gordhan was fired in March 2017, there was outrage. The SA Communist Party said it wanted Zuma out of office, Ramaphosa publicly objected to the decision, and then ANC secretary-general Gwede Mantashe said the new Cabinet was a “list that’s been developed somewhere else” in what was widely interpreted to mean the Guptas’ home in Saxonwold.

For the first time since the advent of democracy in South Africa, middle-class people joined protests, to defend their interests and a man they saw as their hero, Pravin Gordhan.

Much has changed since then.

Now, Gordhan is sometimes portrayed as a major cause of the problem and criticised by the right and the left.

While trying to assess how and why this has happened, it should be noted that because of the problems facing SA’s state-owned enterprises (SOEs), anyone who was minister of public enterprises now would be in the centre of a storm.

Weakening of state power

One of the most important dynamics of this has been the trend towards a bigger role for the private sector, with its accompanying weakening of state power.

This was always going to be hugely contentious and led the ANC Youth League to claim that “one day we’ll wake up and hear that South Africans have been sold to another country” by Gordhan.

Gordhan, the ANC and Ramaphosa himself have all denied the party is following a policy of privatisation.

However, for most people, the only metric that matters is how services they rely on SOEs to provide have declined since Gordhan was appointed.

Of this, there can be no doubt.

Eskom recently announced its highest number of days of load shedding yet and its biggest loss

Eskom posts record R23.9bn financial loss

Last week, Finance Minister Enoch Godongwana said that Transnet had simply ticked the boxes when it came to implementing a decision to allow private companies to use its railway tracks. The company is failing to move goods to the coast, with the result that SA’s entire economy has lost out.

Meanwhile, Gordhan is claiming important progress at SAA.

He cited as proof of its recovery the fact that it was reinstituting flights to São Paulo. But, as has been pointed out by aviation analyst Phuthego Mojapelo, it is not clear that there is a business case for flying to Brazil, especially directly from Cape Town.

Given SAA’s history of flying uneconomical routes for political reasons (and in one case, Malusi Gigaba’s apparent support for SAA to stop flying a profitable route to India so the Guptas’ friend’s airline could benefit), many will not take political promises at face value.

The laborious Takatso deal

There is still no certainty on why the Takatso deal is taking so long.

It was first announced more than two years ago, and while there have been some issues with shareholders, it still makes no sense that the deal has not been completed.

This will give ammunition to those who believe Gordhan is trying to frustrate the deal, even though there is no public evidence of this.

There is even less transparency with SAA’s low-cost airline, Mango.

The business rescue practitioner in charge of the company, Sipho Sono, has gone to court because Gordhan refused to decide on whether to sell the airline. 

When a judge ruled that Gordhan must make a decision, he appealed against the verdict.

To be clear, Gordhan is not appealing against a decision about whether the government must sell the airline. He is appealing against a judgment that he must make a decision.

Sono says that Gordhan “wants to see the business case of the selected investor” before making a decision. Sono won’t share this information because he does not want it to be seen by SAA, a possible competitor of Mango Airlines.

He described Gordhan’s decision to appeal against the ruling as “strange”.

Actions at Eskom

But the word “strange” does not do justice to Gordhan’s actions at Eskom.

While he did condemn Energy Minister Gwede Mantashe’s claim that former Eskom CEO André de Ruyter was trying to undermine the government through load shedding, this support was not enough for De Ruyter to stay in his job.

But, more importantly, he has prevented Eskom’s board from appointing a new CEO.

As News24’s Carol Paton reported in September, the Eskom board sent Gordhan the name of its preferred candidate in May. Three months later (at least), he rejected the candidate, on the grounds that the board should have sent him three names from which to choose.

The consequence of this decision is that Eskom still does not have a CEO. And it was surely the case that his decision to wait so long before rejecting the candidate was based on politics, or the fight for control, which also led to Mpho Makwana’s resignation as Eskom chair.

Gordhan too must have played a role in the resignations of Transnet CEO Portia Derby and other senior executives at the SOE. 

Just weeks before their resignation, he told Transnet’s board it had three weeks to create a turnaround plan for the SOE. He also oversaw Derby’s appointment in January 2020.

At the same time, Gordhan may be defying the ANC in how he wants SOEs to be run in the future.

He has published a draft bill that would see SOEs being controlled through a single holding company. However, the ANC decided at its conference last year that SOEs should go back to their line departments, so, for example, Eskom would be under the Energy Ministry.

Again, this is a strange decision, particularly since the holding company model has been so strongly criticised.

Overall SOE chaos

All these moves and the overall SOE chaos have changed the prism through which Gordhan was seen — from the hero who took on a corrupt president, to a minister making strange decisions that have a negative impact on the entire country.

However, it should also be remembered that governance in South Africa is always difficult, and now more so than ever. The political journalist John Matisonn once observed that none of our presidents has been a Cabinet minister. While some were deputy presidents before becoming president (Kgalema Motlanthe did it the other way round), they have never had a ministry to run.

This may be because running a ministry in this environment will alienate certain constituencies and any minister who runs an important Cabinet department during a crisis is directly in the line of fire.

That said, Gordhan must take responsibility for the decisions he has made. While he has a difficult job, the fact is that he is the one who rejected Eskom’s choice for CEO, oversaw Derby’s appointment (and resignation), and made decisions at Mango Airlines that were described as “strange”. 

By default, the SOE minister’s mistakes affect every South African. His public image has changed dramatically over the past six years and history’s judgement of his legacy will have to take these post-2017 years into account. DM

Gallery

Comments - Please in order to comment.

  • Denise Smit says:

    One thing is for sure , he always gave the unions what they wanted. During wage negotiations his siding with the unions was one of reasons for the 450 Billion of debt of Eskom. He is unfortunately a communist. And it appears they think money is found at the end of the rainbow. He is also a deployed cadre who will do just anything the party orders him to do no matter the consequences. His problem with the Guptas was the they were not cadres. Denise Smit

  • paul Volker says:

    PG did a great job at SARS, everything else has been a disaster, including his time as finance minister.

    • Carl Nielsen says:

      This comment I don’t understand. He was awful at SARS. Totally abysmal. He only looks good because those who followed him were so unbelievably inept (Oupa Pretty Boy) and corrupt (Tom the Don).

  • Dermot Quinn says:

    The Springboks spring to mind, a joint vision with a certain common goal.
    Then we have the SA govt, the ANC, each Minister and all have personal businesses and agendas whose income dwarfs their Min salaries.
    Now try and herd these cats to not knife you in the back, without the type of dirt Zuma had on each one.
    Not Pravins’ game.

  • Sunny Morgan says:

    The man has just been in govt for too long…..out of modern ideas. I was one of those looking to him for leadership during the Zuma debacle but it’s time for PG to go. The SOEs are a mess. The Minister is lost and lacks coherency. Time to take that lucrative pension and retire!!!

  • Fanie Rajesh Ngabiso says:

    Personally, I remain of the opinion that Pravin’s heart is in the right place, and I certainly appreciated his role during the Zuma Era.

  • Thembinkosi Khumalo says:

    Dear Mr Grootes,
    I must commend you on your article even is not the whole truth. I hope it will not the end of your career because Pravin is evil and you have touch the untouchable.

    Former President didn’t persecute Pravin, he was useless then he useless now. He has been exposed of his shortcomings. He is Pharmacist for crying out loud he knows nothing about running a state own entity let alone companies of SAA, Transnet, Denel and Eskom amongst others

    He is no leader but a follower like the current President. It is just that he has too much power. ANC is afraid of so as the President because of his alignment with Rupert.

    De Ruyter was a total failure as a CEO is just that he was white that saved him and also he knew nothing about leadership. Leaders are born not made. Watch Mteto Nyathi turnaround ESKOM like he did with Altron as long as Jamnandas does not interfere and his ANC cabal.

    In South Africa we still look at the leadership in private or public according to colour. Black excellenncy is shunned by the media and people like you Mr Grootes. You might be working for NewsAfrica but your white supremacist has not changed. The media uses blacks to degrade other blacks. It is the Willie Lynch mentality at play. This strategy has worked for generations like Willie said it will.

    • A B says:

      Is that why De Ruyter now has an incredibly lucrative job at Yale University – because he was a total failure? This comment is patently false and as usual relies on racialism as the clutch argument and/or rationalisation. Try again.

    • Grumpy Old Man says:

      Hey Thembinkosi; I am not sure why we would want to look at excellence along racial lines? Its a concept which boxes & places limits on people (which is what apartheid did) & is essentially non liberating
      I am not suggesting we don’t celebrate the achievements of our own – role models are important – but surely we have to move towards a future where ones achievements are not evaluated or graded according to the color of one’s skin?

    • The Proven says:

      To label everything De Ruyter did as a failure and then state that he was “saved” because he is white, is pure racism. In my view your comments border on hate-speech.

    • Fanie Rajesh Ngabiso says:

      Mr Khumalo I’m very sad that you have not yet become aware that race is just a tool used by unscrupulous politicians to continue divisions because it suits them.

      People are people. There are good black people and bad black people, and there are good white people and bad white people, and the same for every shade in between.

      The sooner everyone in this country learns to look beyond race to what is truly important:

      – law and order
      – education
      – electricity
      – clean water
      – roads
      – railways
      – public transport

      And votes for parties who will actually deliver these things, our country is doomed – for everyone regardless of colour.

    • D'Esprit Dan says:

      “He is Pharmacist for crying out loud he knows nothing about running a state own entity let alone companies of SAA, Transnet, Denel and Eskom amongst others”

      He at least has some formal qualification, unlike the droves of cadres who plonk themselves into the butter with absolutely no idea what they’re doing. We’ve seen it over and over again, where politicians with no qualification other than being a politician are appointed to SOE boards and ministerial positions. That said. Gordhan’s problem is that he is ultimately a party man, a socialist and thus unable to understand how a successful, modern enterprise should be run.

      The rest of your post is beneath response.

  • Glyn Morgan says:

    Only one solution, and FEDERATION is it’s name.

  • Niek Joubert says:

    The caption of this report summarises it well. Gordhan now causes more harm than if he was crooked and got fired like the Gupta ministers.

  • Middle aged Mike says:

    There is no clean or polishable end to the anc/sacp/cosatu ‘movement’, full stop

  • Betsy Kuhn says:

    I wish these people can realise its time to STEP DOWN, FORGET ABOUT YOUR OWN POCKETS AND THINK OF THE SOUTH AFRICAN PEOPLE YOU ARE STEALING FROM – ONE ONE THESE DAYS THERE WILL BE NO SA LEFT

  • Patterson Alan John says:

    Whatever King Midas touched, turned to gold and what Pravin touched, has turned to crap, a;ong with many other ANC cadres.
    The accounting ledger does not lie when you line up their enormous debits and little credits.
    But not to worry. The rush of money is not far away. In a short while, as the SOEs and Municipalities crash and burn completely, and the ANC Govt is horribly deep in debt and still digging deeper, the Chinese Belt and Road Program will find its’ way to SA.
    The Chinese will invest and when the expected loan repayments default, the easy money will end up like a tight belt around the SA throat. Being unable to pay, the Chinese will write off debt in exchange for access to Durban and Cape Town harbours for their Navy and fishing fleets.
    Anyway, on the bright side, the railways will be working, the lights will be on and a few more things will work better.

  • Alastair Sellick says:

    I call on Minister Gordhan to resign.
    Enough is enough.
    Admit you have failed, stop wasting the public purse on the most absurd appeal: appealing a judgement requiring you to make a decision (when last I checked, leaders have to make decisions as part of their job description?)
    I mean, what next? Will you take it to the Constitutional Court when you lose that appeal, wasting more precious days and millions more Rands of government resources, borrowed from the capital markets at 12.5% – 13%
    Resign, retire, move on please, Minister Gordhan.

Please peer review 3 community comments before your comment can be posted

X

This article is free to read.

Sign up for free or sign in to continue reading.

Unlike our competitors, we don’t force you to pay to read the news but we do need your email address to make your experience better.


Nearly there! Create a password to finish signing up with us:

Please enter your password or get a sign in link if you’ve forgotten

Open Sesame! Thanks for signing up.

We would like our readers to start paying for Daily Maverick...

…but we are not going to force you to. Over 10 million users come to us each month for the news. We have not put it behind a paywall because the truth should not be a luxury.

Instead we ask our readers who can afford to contribute, even a small amount each month, to do so.

If you appreciate it and want to see us keep going then please consider contributing whatever you can.

Support Daily Maverick→
Payment options

Daily Maverick Elections Toolbox

Download the Daily Maverick Elections Toolbox.

+ Your election day questions answered
+ What's different this election
+ Test yourself! Take the quiz