{"id":107143,"date":"2015-12-14T14:11:46","date_gmt":"2015-12-14T12:11:46","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=107143"},"modified":"2015-12-14T14:16:39","modified_gmt":"2015-12-14T12:16:39","slug":"no-state-owned-entities-will-dictate-to-government-gordhan","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/107143\/no-state-owned-entities-will-dictate-to-government-gordhan\/","title":{"rendered":"State-owned entities will not dictate to government: Gordhan"},"content":{"rendered":"

New finance minister Pravin Gordhan says that it is the government’s duty to earn back the trust of the public.<\/p>\n

On Wednesday night, the presidency announced that it had sacked Nhlanhla Nene as minister of finance, replacing him with unknown David van Rooyen.<\/p>\n

On Sunday evening however, following massive outcry, the presidency replaced van Rooyen with former finance head, Pravin Gordhan.<\/p>\n

“Confidence and trust needs to be earned and sustained. We will stay the course of sound fiscal management. We will maintain fiscal consolidation process,”\u00a0Gordhan said in his first press briefing on Monday. <\/span><\/p>\n

“Confidence is not handed on a silver platter, it is earned,” Gordhan said. “Our expenditure ceiling is sacrosanct. Fiscal discipline will remain.”<\/p>\n

SAA<\/strong><\/p>\n

It was speculated\u00a0that Nene was sacked because he refused to grant SAA permission to amend its plane-leasing deal with Airbus earlier this year.<\/p>\n

On Monday, the government’s news agency reported Gordhan referencing president Zuma when he said that ‘no State-owned entities will dictate to government’.<\/p>\n

The minister said that he would speak with the SAA board\u00a0in the new year, but would call the SAA chairperson telephonically in the next 24 hours.<\/p>\n

He said that SAA was in important flagship for the country, but once it is stabilised, it will be returned to its home. “Treasuries don’t run airlines,” he said.<\/p>\n

Notably, Gordhan said that former minister Nene’s decision on SAA still stands,\u00a0until there is necessity to change it.<\/p>\n

He said that it was time that individuals stop playing with state entities as if it is a personal toy.<\/p>\n

“We require national reflection as South Africans as how we manage state resources. We are guardians of national resources. We must be responsible,” he said.<\/p>\n

Nuclear<\/strong><\/p>\n

Gordhan also spoke about the controversial nuclear build plans, in the country.<\/p>\n

Government wants to build several nuclear power plants in the country to provide 9,600MW of energy. Conservative estimates into the costs involved say such a project would cost R500 billion \u2013 though experts say it is more likely to spill over R1 trillion in reality.<\/p>\n

Gordhan confirmed that the nuclear plan has been approved and that a formal procurement process will begin in accordance to the law.<\/p>\n

He warned: “We will not spend money we don\u2019t have.”<\/p>\n

The minister promised to maintain fiscal discipline, saying that the state was the guardian of public resources, and must act responsibly in that role.<\/p>\n

The position of finance minister has controversially passed through three pairs of hands over the space of four days.<\/p>\n

Since markets opened to the new Gordhan had taked up the position, equity markets have recovered 75% of their losses, while currency markets have recovered 50% of their losses, the minister said.<\/p>\n

Here is a timeline of events this past week:<\/p>\n

Wednesday, December 9, 2015:\u00a0<\/strong><\/p>\n