Minister Gordhan addresses challenges of state capture crisis

CAPE TOWN – Public Enterprises Minister Pravin Gordhan has emphasized that the recovery from the far-reaching impact of state capture is a time-consuming process, cautioning against expectations of an instantaneous turnaround.

The minister highlighted the logistical struggles currently faced by Transnet, a troubled parastatal, as a vivid illustration of the detrimental effects caused by state capture.

Gordhan, along with his department, presented updates on the progress made in implementing the Zondo commission’s recommendations to the National Council of Provinces’ select committee on public enterprises and communications.

He underscored that state capture, which unfolded over several years, inflicted considerable “value chain damage” across various sectors.

While acknowledging that most state-owned enterprises remained unscathed, Gordhan pointed out that crucial entities like South African Airways – SAA and Eskom bore the brunt of theft during the era of state capture.

Eskom South Africa — **INSERT:** South Africa power utility Eskom has been struggling increasing speculation of a possible privatisation of the entity.

Fixing the damage caused to these entities will not be a swift process, according to the minister.

“Recovery from state capture is not an instantaneous process,” Gordhan asserted, dispelling the notion that simply replacing the board would suffice.

He elaborated, stating, “Given the extent of the damage, you’ll find that recovery part is not that easy.”

Gordhan emphasized the necessity of identifying individuals implicated in state capture to prevent their employment in other state entities.

The department recognizes the importance of scrutinizing and holding accountable those who played a role in the compromised governance and financial mismanagement during the period of state capture.

As South Africa strives to repair the damage wrought by state capture, Minister Gordhan’s remarks shed light on the complexities and challenges associated with this arduous recovery process.

The focus remains on systemic changes, accountability, and a sustained effort to rebuild trust in key public enterprises.