Finance Minister, Malusi Gigaba, on Saturday urged the government to be as vigilant with private sector corruption as it was with public sector corporate governance, saying that it was government’s duty to do so.
Citing recent scandal at South African-based giant retailer Steinhoff International, Gigaba said the multinational retailer’s corporate governance should receive the same scrutiny that is given to government departments and state-owned enterprises when they flounder.
Steinhoff was plunged into controversy last week when its long-time chief executive, Markus Jooste, resigned in a huff citing “accounting irregularities” for allegedly misrepresenting profits at subsidiaries following an investigation to the company’s financials by German authorities.
The scandal wiped off about R190 billion in Steinhoff market capitalization as the share price plummeted.
“Steinhoff must receive the same scrutiny as alleged corruption in the public sector. Regulatory bodies will investigate Steinhoff. Ultimately, we need to act decisively to restore public confidence in our public and corporate leadership, as well as our revolution as a country,” Gigaba said.
“In this regard, we need a united and decisive response, not to be vocal selectively and decided in other instances when it suits us or when it is uncomfortable to be vocal.”
Gigaba was speaking during the first of a series of breakfast series hosted by the Progressive Business Forum to be held during the duration of the 54th national conference of the African National Congress (ANC) at Nasrec. The ANC is set to elect a new president and national office bearers to lead the party for the next five years.
He said that he did not agree with the view that government should not be involved in business.
Responding to Investec chief executive, Richard Wainwright’s, call for the government to create a conducive environment for business to thrive, Gigaba said the government was in talks with the mineral resources minister to end the stalemate with the mining sector to advance productivity in the mining sector as well as drive beneficiation.
Gigaba also said that if he may be “so bold” and address the party’s incoming leaders, the most important task for the ANC’s new leadership is to “achieve inclusive growth through radical economic transformation as quickly as possible”.
“I would like to encourage this coming leadership of the African National Congress, rather than be daunted by many challenges facing our country, to see opportunities and be resolute in uniting the movement and the country,” Gigaba said.
– African News Agency (ANA)
