Pravin Gordhan
Pravin Gordhan is sworn in as Minister of Public Enterprises in Cape Town, South Africa, February 27, 2018. REUTERS/Sumaya Hisham

Home » FIVE reason why DA want Gordhan OUT

FIVE reason 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.

13-10-23 14:18
Pravin Gordhan
Pravin Gordhan is sworn in as Minister of Public Enterprises in Cape Town, South Africa, February 27, 2018. REUTERS/Sumaya Hisham

The DA, has said it expected Public Enterprise Minister Pravin Gordhan to resign, following the poor report from the Auditor General.

In addition to failed targets, the AG presented a bleak report on state-owned entities, with no entity receiving a clean audit.

ALSO READ: Auditor General reveals billions wasted by municipalities

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.

ALSO READ: Transnet CEO Portia Derby and CFO resign from their positions

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:

ALSO READ: Bad news for some Bafana fans

  1. 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.
  2. 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.
  3. 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.”
  4. 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.
  5. Failure to open the SOE sector to private participation

CLICK HERE TO READ ARTICLES BY APHIWE NGWENYA