Public Enterprise Minister Pravin Gordhan. Image: Kopano Tlape GCIS
FIVE reasons why DA want Gordhan OUT
The DA, has said it expected Public Enterprise Minister Pravin Gordhan to resign, following the poor report from the Auditor General.
Public Enterprise Minister Pravin Gordhan. Image: Kopano Tlape GCIS
The Democratic Alliance(DA) has called for Public Enterprise Minister Pravin Gordhan to step down, following a rather bleak report released by the Auditor General two days ago.
AUDITOR GENERAL REPORT
In its report, the AG revealed that the department had only managed to achieved 58% of their targets, however in doing so using 74% of its budget.
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In addition to failed targets, the AG presented a bleak report on state-owned entities, with no entity receiving a clean audit.
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According to the AG, the root cause of the department and SOE’s failures to achieve targets and improved audit outcomes is because of
- Ineffective action plans and inadequate monitoring
- Management instability
- Inadequate financial management discipline
- Ineffective in year monitoring system to track performance against planned indicators.
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DA WANT PRAVIN GORDHAN GONE
The DA has said, after the release of such a damning report, Gordhan should have handed over his resignation letter.
The opposition party has given five reason as to why Gordhan should vacate his office:
- Transnet’s collapse is estimated to be costing the country R1 billion a day in economic output. This is due to a reduction goods transported by the freight rail system. The DA says it has gone down from 226million tons to 150million tons in the last five years.
- Leadership and governance issues at SOE’s also highlighted by the AG. Two SOEs have no CEOs, while three have acting CEOs and some are either operating under interim boards or have unfilled board vacancies.
- Turning a blind eye to alleged corruption and criminal syndicates causing issues at Eskom. “Gordhan outright dismissed allegations that criminal cartels active in Eskom’s coal-supply chain have connections with high-ranking politicians.”
- Selling SAA on the cheap – According to the AG, the SAA transaction was problematic. The due diligence performed on preferred partner Takatso was poor. The AG called for the valuation of SAA’s assets to be redone.
- Failure to open the SOE sector to private participation
