As new gang takes over, let's hope Gigaba's fidgeting days are over

In the Polokwane celebrations after Jacob Zuma's ascension to the presidency of the governing party almost a decade ago, there was one particular statement, overheard at one of the many whisky- fuelled parties in the Limpopo capital, that has stuck with me: isikhathi sethu sokudla. Loosely translated: it is our time to eat.

At the centre of the frustration was the Treasury which then just as now was a bit tight with the purse.

A target was on the head of then finance minister Trevor Manuel, the minute Thabo Mbeki walked off that stage.

But as markets and the general public had grown fond of and trusted the leadership of the Treasury, the new gang didn't immediately act against Manuel and the "class project" he represented.

So it was no surprise that in Zuma's first cabinet in 2009, Manuel was shifted and given the task of developing the National Development Plan.

In truth, his had been a long stint as finance minister and the fact that Pravin Gordhan, the erstwhile tax collector, would be his successor, pointed to continuity: a seamless succession.

And there was a bounty to spend after years of fiscal prudence. This, combined with positivity on emerging markets and South Africa in particular, as the country geared up to host the 2010 soccer World Cup, made us the land of plenty.

Debt-to-GDP rose from just over 20% at the start of 2009 to close to 50% today, as government raised borrowing to fund infrastructure and, sadly, a higher public-sector wage bill, which hasn't improved productivity.

But emerging markets were in a sweet spot as US and European economies creaked on the back of the greed of their bankers.

State-owned enterprises such as Eskom, under pressure from an energy crunch, were among the big spenders in this period. More coal had to be sourced urgently and power stations built. Under the cover of a supply crisis, the power utility leaked money like a sieve.

There was also ample appetite to secure the future of the forever-troubled state airline SAA.

Transnet ramped up spending plans to ensure the country benefited fully from a super-commodity cycle that was still under way as Chinese demand for raw materials seemed endless.

The political principal charged with looking after these state assets was Malusi Gigaba, who served as President Zuma's minister of public enterprises. He presided over the collapse of corporate governance at these institutions.

At the time, he said his department would seek to exercise an oversight mandate and also act as some sort of shareholder activist; an activism that in practice just meant the endless reshuffling of the boards of his vast portfolio of state-owned companies.

When, after two years as minister, Eskom chairman Mpho Makwana, a veteran with almost a decade at the power utility, was removed and replaced by Zola Tsotsi, Gigaba came under fire from ANC allies the Congress of South African Trade Unions and the National Union of Mineworkers for failing to consult on the restructuring.

Tsotsi was chairman when Eskom suspended its entire executive, including its CEO, in a move that some said was at the bidding of the Gupta family.

Dudu Myeni became chairman of SAA when Gigaba became minister. And although their relationship would eventually sour, she wasn't a victim of his meddling. Her term has been marked by board musical chairs and failed turnaround plans.

At Transnet and Denel, the enthusiastic and ever-present Gigaba was at the centre of significant boardroom changes in his efforts to "rejuvenate" these institutions.

His term as public enterprises minister ended only about three years ago so I think it's now safe to say that all his fidgeting was one of the central reasons for the total collapse of governance at these institutions. So much so that ratings agencies have singled them out as one of the risks to the country's credit ratings, which are on the cusp of a downgrade to "junk" status.

In his new portfolio as finance minister, not only does Gigaba have to once again straighten up these institutions, but his department is now directly responsible for the most troublesome institution in South Africa, SAA.

Given his past performance and his "shareholder activism" in favour of a chosen few, one shudders at the thought of what lies ahead.

Perhaps his corporate skills have improved vastly during the years he was away from state-owned enterprises. He may just surprise us all by managing to achieve what he started all those years ago.

But just what did he start?

Over the past decade, state-owned enterprises - as we've seen in the countless corruption scandals involving Denel and Eskom - have clearly been the feeding trough for the leading faction in the ANC.

For most of that time its political principal was the man who is now the new finance minister.

This got me thinking about some members of the victorious Polokwane faction, whose single biggest motivation was that it was, finally, their time to eat.

In his role as the most senior member of the cabinet - and in these desperate economic times almost more important than the president - I have to wonder who he will ultimately serve?

derbyr@sundaytimes.co.za or follow Ron on twitter @ronderby