'State capture will cripple SA if not dealt with now'

Gordhan along with his former deputy minister Mcebisi Jonas are speaking at the University of Johannesburg on issues of state capture and so-called white monopoly capital.

Former Finance Minister Pravin Gordhan addressing masses on state capture and white monopoly capital at the University of Johannesburg on 26 July 2017. Picture: Katleho Sekhotho/EWN

JOHANNESBURG - Former Finance Minister Pravin Gordhan says if nothing is done about state capture, it’s going to take several years for the country to recover.

Gordhan along with his former deputy minister Mcebisi Jonas are speaking at the University of Johannesburg on issues of state capture and so-called white monopoly capital.

The former Finance Minister also touched on the idea of radical economic transformation. He says it’s a slogan that should be used carefully.

“But as a result of both the growth factor and the state capture and the unhappiness that South Africans have about it, we also have a freezing on the investment side. And no economy can grow, no jobs can be created, no money for fees, for hospitals or for any other form of education or public service is going to be found if we have a declining economy.”

At the same time, Jonas says South Africans need to accept the reality that there is a crisis in leadership.

Jonas says transformation won't necessarily be achieved through increasing black ownership of Johannesburg Stock Exchange listed corporations.

He says South Africa needs to reconstruct ways to develop the economy.

“We need to shift government’s promising from focus on redistributing just only existing assets, and doing that as an end in itself.”

STATE-OWNED BANK

Jonas says perhaps when the weaknesses in state-owned enterprises have been dealt with, a state-owned bank can be considered.

He says calling for a state bank at the moment would be an opportunity for others to achieve objectives other than development.

Jonas says state-owned companies are not being managed well.

“Maybe if you have dealt with some of the weaknesses in the state-owned enterprises, maybe when you have transformed them and refocused them and you are capable of managing and you put right leadership in them you probably might have a different outcome.”

Jonas highlighted that the county is in a crisis of leadership.

(Edited by Zinhle Nkosi)