Reshuffled ministers deficient in efficiency
It has been six months since President Jacob Zuma reshuffled the Cabinet to “improve efficiency and effectiveness” — a noble concept betrayed by the head of state’s likely real intentions when he wielded the axe.
The reshuffle has done nothing to improve the efficacy of the administration. If anything, it has reinforced just how ineffectual it is, especially in strategic areas.
Perhaps this was part of the grand scheme — to wreak havoc on stable and functioning departments. But then again, irony and Zuma are comfortable bedfellows, to the detriment of governance.
Young blood was also introduced to the Cabinet, with some old hands bidding farewell to their plum posts. Malusi Gigaba was handed the crucial finance portfolio, Joe Maswanganyi now oversees transport, Fikile Mbalula became our crime-fighter-in-chief, Mmamoloko Kubayi was tasked with looking after the country’s energy needs and Hlengiwe Mkhize got the keys to home affairs.
S&P Global Ratings and Fitch Ratings promptly rewarded Gigaba with out-of-schedule downgrades of SA’s foreign-denominated debt, citing concern over policy continuity.
In particular, the agencies raised the spectre of a revival of the country’s ill-advised new nuclear build — SA is too broke for such indulgences.
They also feared for SA’s policy direction in the wake of the wide-ranging reshuffle. Moody’s Investors Service was the exception and took a wait-and-see approach.
Gigaba’s first media conference as political head of the finance ministry did not do much to allay such worries, as he dedicated most of his speech to saying he would open up the Treasury to previously disadvantaged groups, and spoke at length about a departure from “orthodox economics”.
At the time — which was soon after he was announced as the new finance minister — Gigaba did not explain what the alternative to “orthodox economics” would be, or care to explain what shape such a new policy direction would take.
Since being appointed finance minister, Gigaba has mostly had to put out fires and fend off allegations that he was installed as head of the ministry to destabilise the Treasury. He has, of course, denied these claims, but there is a growing body of evidence that points to a potentially sinister subplot despite Gigaba’s protestations.
His hiring of Prof Chris Malikane as an adviser did not do him any favours, nor has Gigaba’s handling of South African Airways, especially the controversy over Dudu Myeni’s contract extension.
The recent noise surrounding the Public Investment Corporation will also not have done much to change perceptions of Gigaba. This is a pity because a lot rides on him, particularly with the medium-term budget policy statement a mere three weeks away.
This is the time when his full attention should be focused on tabling a credible budget that will appease the ratings agencies. But not many are convinced this will be the case — the overwhelming view is that there is a high probability that a second wave of downgrades awaits SA.
One hopes this is not so and that Gigaba will defy the sceptics and overcome the odds — for the sake of the country and his career.
Gigaba’s peers have not done well either: Maswanganyi has a Passenger Rail Agency of SA board quandary to deal with, Mbalula and his Hawks remain unresponsive to state capture, Kubayi is dithering on PetroSA and the Strategic Fuel Fund, while Mkhize is locked in a nasty dispute with her director-general.
Efficiency and effectiveness remain elusive.