Gigaba stands firm on cadre deployment

Public Enterprise Minister said he would not apologise or retract his remarks on cadre deployment.

Public Enterprises Minister Malusi Gigaba. Picture: Sapa

CAPE TOWN - Public Enterprises Minister Malusi Gigaba has been called to retract his remarks on cadre deployment.

On Tuesday, Gigaba told the Cape Town Press Club that he won't apologise for deploying a cadre into a board provided the person has relevant experience.

But the Democratic Alliance (DA) believes Gigaba's statement is dangerous and would hamper efforts to professionalise the public service.

Gigaba also told the Cape Town Press Club that his department was still in the process of reviewing the National Energy Regulator of South Africa (Nersa)'s tariff hike decision.

On the issue of load-shedding, Gigaba said while he welcomed Nersa's eight percent increase tariff it did very little to help Eskom.

"We welcomed the decision by Nersa. I think that decision was good for the consumer, but of course the decision was difficult for Eskom and we need to look at how we deal with the challenges."

He said this forced the department to review the regulator's decision.

Gigaba also alluded to announcements he would be making about certain state owned companies his budget speech next week.

Citing billion Rand losses by South African Airways (SAA) and Nersa's decision not to grant a 16 percent electricity tariff increase, Gigaba spoke openly about the financial role his department has been forced to play to keep the entities afloat.

He spoke at length about each of the parastatals.

The Minister said the national carrier will once again report a multimillion Rand loss in the current financial year.

The airline ran a loss of R1.3 billion in the last financial year.

In April, the airline appointed a new CEO after the Board of Directors of SAA suspended the national carrier's acting CEO, Vuyisile Kona, earlier in 2013.

However, he added despite all the challenges facing the state enterprises he was confident they will one day operate with minimal government support.