Business
S’ African Presidency Defends New Team For State-Owned Firms
South Africa’s Presi
dency on Thursday defended plans to give President Jacob Zuma supervision over state-owned companies.
The presidency said in a statement in Johannesburg that speculations that the council was a tool to limit Finance Minister Pravin Gordhan’s duties were baseless and false.
The presidency said: “There has been intense speculation since the announcement this week with some commentators and journalists suggesting some sinister motives behind the establishment of the council.
“Such speculation is baseless and false.”
Cabinet announced on Monday that a new committee on state-owned enterprises (SOEs) would be set-up to “provide Zuma line of sight on strategic decisions and interventions” to improve the performance of SOEs.
But former finance minister, Trevor Manuel, said the new council was an attempt to limit the powers of Gordhan for rebuffing an elite police unit invitation over spy issues.
Gordhan had declined a request by an elite police unit this week to present himself in relation to allegations he used the tax office to spy on politicians, including Zuma.
Analysts said that Zuma’s team and the Treasury under Gordhan have disagreed about government spending, including at loss-making state companies like South African Airways.
Gordhan has pledged to rein in government expenditure to limit rising inflation, narrow a gaping budget deficit and appease ratings agencies considering cutting South Africa to “junk” status in reviews expected by December.