EFF statement on the nonsensical appointment at Eskom and Prasa

16 May 2020

The EFF is disgusted by the continued reversal of transformation efforts at strategic state-owned companies through the appointments of white and Indian males who once served in failed and bankrupt companies — a consequence tied back squarely to their incompetence.

These individuals, despite their record of underperformance, are given the undeserved latitude to gamble with our prized state entities.

The EFF rejects the appointment of Richard Vaughan and Krishna Govender as Eskom and PRASA Acting CEO, respectively. We see their appointments to these positions as an insult to the collective efforts made thus far to advance black management and leadership in the economy, relegating our participation in the economy to that of subservience and compliance.

The Ramaphosa-Gordhan ally-ship has reminded us of why they are loved by white capital.

Like Gordhan, Ramaphosa, demonstrates his unapologetic preference for whites and Indians, men in particular, over his own people. Based on the appointments they continue to make across state entities, it is evident that neither Gordan nor Ramaphosa are interested in transferring the wealth of South Africa into the hands of the majority of the people of this country in a redistributive manner that pursues fairness.

Black people continue to bear the brunt of the current economic and public health system failures linked to our present time. Perhaps these facts will drive home the shocking and real picture of transformation in our country.

Black Africans make up only 15.1% of senior management across all sectors. The majority of black senior managers are found in the public sector, where they account for more than 75% of the senior management demographic. In comparison, only of managers in the private sector are black. When you look at the public and private sector together, white people account for 66.5% of top management positions despite being 9% of the population.

It is evident that there is a concerted effort to ring-fence senior management positions for minority groups while excluding black people from the wide-scale ownership and management of the economy. This happens even though private sector businesses are often kept financially afloat through tax breaks, incentives, and most recently, through the subsidised relief loan schemes rolled out in the aftermath of the COVID-19 pandemic which includes the taxes of the majority of black workers living in this country.

We know that when Mr Ramaphosa talks about transformation, he is not genuine about any of the commitments he makes. He continues to prove this by surrounding himself and his ministers with white senior managers in strategic positions in state-owned companies.

Since the appointment of Mr Gordhan, Eskom is firmly led by whites in all critical strategic areas. It is retired white individuals who are returning to lead strategic technical positions even when they are not qualified, and qualified black engineers are excluded.

The same is happening at Transnet, Denel and now it is also happening in other ministries, including Transport. The only black people Gordhan will appoint are cooperating blacks who will not ask essential questions about transformation and will take white instructions on everything.

The implication of the reversal of the little transformation we are witnessing is that once whites and Indians occupy senior positions, they will go on to dominate the up and downstream supply value chain. White South Africans (especially those in control of production means) don't believe in investing time and resources in the development of genuine black-owned companies — unless they have handpicked you as a 'token' for the purpose of fronting.

This will lead to a total exclusion of black people in the economy, and the majority will be reduced to be administrators of the affairs of white companies without being concerned by transformation just to make enough to survive and feed their families.

We are not going to defeat inequality and poverty with a President that has gone out of his way to start projects to make government and strategic state-owned companies white again under the false pretence of 'competence' and 'efficiency.' This is the epitome of self-hate and hating of blacks in general. If we do not prioritise the employment of black people, in particular women, in senior positions in the public and private sector, we would essentially be eating away the gains of our hard-won political freedom. Currently, it is Mr Ramaphosa, who is making sure that the transformation and transfer of ownership agendas remains a pipe-dream, like so many of the post-1994 programmes that would improve people's lives.

We must continue to question the underrepresentation of black people in senior management.

The EFF calls on black people, of every class and status, and in particular, those that have been fortunate to lead careers and organisations in the public and private sector to remain committed to the transformation and ownership transfer agenda. We call on you to continue to employ and empower senior black managers and to mentor as many young people for positions of senior management as you possibly can. We can no longer rely on the state. It has shown us that it is functioning against the interests of black people, in general, and women, in particular. We call on you to join us incapacitating black people, building skills, and transforming our economy.

Issued by Vuyani Pambo, National Spokesperson, EFF, 16 May 2020