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Gordhan throws National Treasury under the bus

By

Dear Editor

It is now up to the Chairperson of the Standing Committee on Public Accounts (SCOPA) Mkhuleko Hlengwa, to agree to the DA’s request for the Minister of Finance, Enoch Godongwana, the Minister of Public Enterprises, Pravin Gordhan, as well as the Director Generals of National Treasury and Department of Public Enterprises to be called to appear before SCOPA to clarify the contradictions surrounding the gift of 51% of the SAA shares to the Takatso consortium.

In reply to SCOPA dated the 7 April 2022 Pravin Gordhan, Minister of Public Enterprises, has flatly contradicted Dondo Mogajane, Director General of National Treasury, by claiming:

“In a letter to SCOPA, NT indicates that it was not involved in the selection process for the SEP (Strategic Equity Partner for SAA). The letter from the Minister of Finance to the Minister of Public Enterprises referred to above clearly contradicts this view.”

The selected quote from a letter apparently written by Enoch Godongwana, the Minister of Finance, on the 4th of February 2022 and presented by Gordhan in the reply to SCOPA reads as follows:

“Section 54(2) of the PFMA does not find application in this instance as it is the government, as the shareholder selling its stake in SAA, Section 54(2) of the PFMA only finds application where a public entity concludes any of the transactions mentioned under Section 54(2) of the PFMA. In other words, Section 54(2) (c) would apply in an event whereby SAA was seeking to dispose a significant shareholding in any of its subsidiaries or was seeking to acquire significant shareholding in another company. The disposal of a majority shareholding in SAA has already been approved by Cabinet and thus no approval or noting is required from the Minister of Finance in terms of the PFMA.”

This quote from Enoch Godongwana contrary to Pravin Gordhan’s assertion that it contradicts the view expressed in the 18 March 2022 National Treasury letter to SCOPA instead seems to confirm the statement by Dondo Mogajane, the Director General of National Treasury, that National Treasury was not involved in the selection process of selecting the Takatso consortium as the selected Strategic Equity Partner for SAA.

The letter from Pravin Gordhan, the Minister of Public Enterprises, casts very serious aspersions on the integrity of National treasury and will likely have serious implications for South Africa in both domestic and international financial markets. This possible damage to the reputation of the National Treasury must be dealt with promptly and publicly to establish the facts that will either establish that National Treasury was completely honest with SCOPA or will establish that urgent intervention is required to restore the integrity and reputation of the National Treasury.

Whether it is Pravin Gordhan or Dondo Mogajane who has misled SCOPA and thus the Parliament of SA, the guilty party must face severe consequences for such incredible disdain for Parliament.

The most glaring omission by Pravin Gordhan, the Minister of Public Enterprises, is his complete failure to provide details of the terms and conditions contained in the agreements entered into by the Department of Public Enterprises with the Takatso consortium that the National Treasury have concerns about. In addition, Pravin Gordhan has not provided copies of the agreements entered into between the Department of Public Enterprises and the Takatso consortium.

This is a serious omission on the part of Pravin Gordhan that must be dealt with thoroughly and in public by SCOPA to ensure that there is no malfeasance involved in the agreements entered into between the Department of Public Enterprises and the Takatso consortium. It is vital to establish that the deal is in the best interests of all South Africans and not just with the selected Takatso consortium beneficiaries.

Regards

Alf Lees MP
DA Member of the Standing Committee on Public Accounts

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Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.