Analysis: SOEs not ANC's junior train set

26 August 2015 - 02:45 By S'thembiso Msomi

The latest economic growth figures, released by StatsSA yesterday, are a rude reminder of the depressing state we are in. According to the statistics agency, real GDP at market prices shrank by 1.3% for the second quarter of this year.This decrease is mainly attributable to the decline in the manufacturing, mining, fishing and agricultural industries.With current growth, the economy is in no position to create new jobs at the rate required to bring down high unemployment. Instead, there are real prospects of massive job cuts in mining, steel and other sectors this year.All of this happens at a time when the ANC is preparing for a meeting of its national general council in October.The meeting, which will be attended by delegates from branches across the country, acts as a mid-term performance review forum for the ANC and the government it leads. Discussion documents prepared for this gathering often make for thought-provoking reading, with their authors raising important questions about the direction both the party and state are taking.This year is no different, with documents, such as one on economic transformation, being brutally honest about the problems facing the country.It is also clear from this document that the ANC is not about to change its view that state-owned enterprises are central in driving economic growth and development.The document acknowledges the governance issues faced by many parastatals and calls for action to be taken urgently to ensure that the boards appointed to run them fulfil their fiduciary duties, that a clear distinction is drawn between the roles of the board and of executives, and that competent people are appointed to positions of power and authority.The governing party further warns that "when there is repetitive poor management, allegations of corruption and patronage within high leadership echelons, the legitimacy of the state and the polity as such are undermined".All of this sounds great and reassuring. But the problem is that we are not hearing this for the first time.Ahead of every major conference the ANC has spoken out about the issues facing parastatals that damage the state's capacity to deliver.But little seems to be done to root out their fundamental causes - corruption, poor governance and the appointment of unsuitable personnel to key positions.Public Protector Thuli Madonsela's report on the shenanigans at Passenger Rail Agency of SA shows just how serious the problem is.Like many others who were found to be in the wrong by Madonsela, former Prasa CEO Lucky Montana is protesting his innocence and says he will have the public protector's report - entitled "Derailed" - set aside by the courts.Be that as it may, the report makes for some worrisome reading and suggests that Montana used the parastatal to benefit his friends and, apparently, relatives.Were it not for the conscientious trade unionists who reported the matter to the public protector we would have never known about what was going on.However, it is concerning that, according to Madonsela, the dominant faction at the SA Transport and Allied Workers' Union later tried to withdraw the complaint.Also troubling is the revelation that one of those who apparently unduly benefited from maladministration at Prasa is ANC MP and ANC Youth League presidential hopeful Pule Mabe, whose KG media was paid R33-million just to produce a glossy magazine.Nothing will send a clearer message that the governing party is serious about cleaning up parastatals than the ANC proactively investigating Mabe's role in this.The party's integrity committee - established with much fanfare a while ago - could show its mettle by taking up this case and investigating whether any ANC member was involved in milking the parastatal.If state-owned enterprises are going to be at the forefront of turning around our economy under these tough conditions, those in authority should start weeding out the executives and board members who see the parastatals as their personal property, to be abused at will...

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