Jonas: All in­sti­tu­tions un­der threat

The Citizen (KZN) - - BUSINESS - Pa­trick Cairns

Amid grow­ing con­cerns that Na­tional Treasury and the Pub­lic In­vest­ment Cor­po­ra­tion (PIC) are be­ing tar­geted by the agents of state cap­ture, for­mer deputy min­is­ter of fi­nance Mce­bisi Jonas has warned that South Africans can­not pre­sume that any in­sti­tu­tion is safe.

“Un­til re­cently we have been say­ing that Treasury is on the right track, the Re­serve Bank is on the right track, and Stat­sSA and the elec­toral com­mis­sion are on the right track, but that’s not static,” he told the Morn­ingstar In­vest­ment Con­fer­ence in Cape Town.

“We must de­fend all in­sti­tu­tions, even those we think are not cap­tured, be­cause when does the process of cap­ture be­gin and when does it end?”

Jonas shared the stage with for­mer fi­nance min­is­ter Pravin Gord­han, who once again called on South Africans to be vig­i­lant.

“The space for these guys is nar­row­ing,” Gord­han said. “There­fore the pace of loot­ing is in­creas­ing.

“That is what we should be wor­ried about.”

Jonas pointed out that there is a clear pat­tern to how in­sti­tu­tions are cap­tured, and this is what must be watched at the PIC.

“The pat­tern is a sim­ple one,” he said. “You re­move man­age­ment, and put in com­pli­ant man­age­ment.

“You re­move boards, and put in boards that are com­pli­ant.

“The rest is easy. That has been the sce­nario at state-owned en­ter­prises.”

The re­cent fo­cus on the PIC’s CEO, Dan Matjila, and at­tempts to re­move him should there­fore not be taken lightly.

Gord­han did, how­ever, com­mend the trade union move­ment for get­ting in­volved very quickly.

This has played a role in keep­ing Treasury’s ac­tions in check so far, he said.

The space for these guys is nar­row­ing. There­fore the pace of loot­ing is in­creas­ing. That’s what we should be wor­ried about. Pravin Gord­han For­mer fi­nance min­is­ter

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.