Gordhan: Looting of state-owned enterprises ‘still happening’

Gordhan addressed the National Union of Mineworkers Policy Conference in Boksburg on Wednesday.

He said the election results was a clear message to the ANC about the party’s mistakes. 

Gordhan said the drop in votes was due to the party’s failure to implement policies, and for using funds to dish out tenders and job opportunities. 

"We say the people have spoken, they have told us what we are not doing right, not just as the ANC but the alliance partners as a whole. What is that disconnect between the activists and leaders of our alliance and the masses of our country?

“How do progressive forces respond to the challenges that we face? Are we going to do more of what we have done before, or do we have the courage to renew ourselves?” 

Gordhan warned if the looting of government enterprises doesn’t stop, the country will see its state-owned enterprises collapse again. 

He reflected on the struggles of Transnet, Eskom and South African Airways, saying it was as a result of the looting by people who have been deployed in government positions.

He warned that not much will change if SOEs continue to be treated as cash cows.

"In dealing with the SOEs in the future, the danger is we going to go to the past in some form.

“How do we act as defenders of the gains we have made in the past? To move away from state capture?”

Gordhan warned the “opportunistic distribution of state resources has to stop”.

"It is still happening, in many of the institutions.

“SOEs have been like magnet. They have been attracting all sorts of people who want to extract contracts from coal, transport of oil contract," said Gordhan.

He said damage caused by state capture has become clear over the past five years.

"Firstly, it destroyed all the governance system. It put the wrong people on board, destroyed any form of accountability, audit committees and all the necessary structures.

“There were still individuals on various boards who had engaged on corruption activities, who had worked with different types of businesses and billions of rands left our fiscus as a result of corruption activities.”

He says of this had an obvious impact on the operations of major SOEs.

"The focus was on stealing rather than building making sure that we had efficiency in the SOEs.

“Today, in rebuilding efficiency, if you don't do things the right way, you can get hurt or you won't be as productive as you should be.

“The same applies to Eskom, Transnet, Prasa or an SAA," said Gordhan.

"If we don't stop that, then we are defeating ourselves and we are going to once again say these institutions are not working.”

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