Public Enterprises Minister, Pravin Gordhan is the proverbial talk of the town on social media. The minister was in the news today for two separate reasons. The minister earlier on Wednesday reported that the State has recovered more than R2.1 billion from “irregular” contracts. These contracts were awarded to businesses or entities from state-owned enterprises.
Gordhan relayed this information in a written reply to IFP member of Parliament Elphas Buthelezi. Buthelezi had asked Gordhan about the interventions that had been placed to recover monies lost by state owned businesses.
It should be noted that according to Gordhan over R4.8 billion has been lost through state capture. Gordhan said that the rot within state businesses was deep and immersive but can be addressed. According to Fin24, Eskom has recovered R902 million from McKinsey and Trillian and has been ordered to pay the energy supplier R600 million.
Gordhan said that Special Investigating Unit has also filled a court application for Eskom to set aside the Tegeta Brakfontein coal supply agreement. The agreement is valued at R2.7 billion. Trasnet has recovered R618 million from China South Rail.
“Civil claims have been lodged against former executives to recover losses that were incurred as a result of their irregular conduct,” Gordhan noted. “Each board, supported by other officials is heavily seized with executing the plan.” The plans are beginning to yield “tangible results,” he said. “However, to be frank, overcoming the full impact of state capture and corruption requires vigorous effort and courage from boards and management,” Gordhan added. It was no surprise that many South Africans had a lot to say on social media about Gordhan’s revaluations. As with most things on social media some were happy with the news:
It seems that the more urgent news to many Twitter users is that the fact the Public Protector Busisiwe Mkhwebane is heading back to the Constitutional Court. Mkhwebane, on Wednesday evening, filed an application to the Constitutional Court for leave to appeal a High Court ruling which suspended the implementation of remedial action against Gordhan.
This comes after Gordhan won an urgent interdict to suspend the remedial action ordered in the South African Revenue Service so-called ‘rogue unit’ report against him. The minister is seeking a full judicial review.
Mkhwebane believes that the High Court order was granted erroneously and is bad in law and that it will create unbearable conditions for the effective functioning of the Public Protector.
Mkhwebane argued that Gordhan violated the Constitution and the Executives Ethics Code by establishing the ‘rogue unit’ in 2007. The Public Protector wants Gordhan to be disciplined by President Cyril Ramaphosa and has also called on the National Prosecuting Authority and police to look into possible criminal charges.
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Source: IOL