Gigaba aide calls for nationalisation - TechCentral

Gigaba aide calls for nationalisation

Malusi Gigaba

An adviser to South Africa’s new finance minister advocated the state takeover of banks, mines and insurance companies in a newspaper editorial, two weeks after President Jacob Zuma’s ouster of Pravin Gordhan shocked investors and led to a debt downgrade.

In an opinion piece, titled “Our chance to complete the revolution” and published in the Sunday Times, Christopher Malikane, an economics professor at Johannesburg’s University of the Witwatersrand, also proposed the establishment of a state bank that would combine all government-owned financial institutions, the nationalisation of the South African Reserve Bank and the expropriation of land without compensation to the owners.

The Sunday Times said Malikane, who has advised trade union federation Cosatu, is an adviser to finance minister Malusi Gigaba, citing Gigaba’s spokesman Mayihlome Tshwete. Gigaba. who was appointed on 31 March, has pledged to avoid further debt downgrades, and said on 13 April that he urged Zuma to stick to previous budget plans and wants management continuity at the nation’s treasury.

Malikane in February wrote an opinion piece for Independent Media, which publishes 15 newspapers in South Africa, in which he disagreed with the ANC policy to transfer resources to citizens. He said: “The only sensible way in which the people as a whole can own these basic resources is through nationalisation carried out by a democratic state, which is the only institution that can justly claim to represent the will of the people.”

Gigaba and his deputy, Sfiso Buthelezi, who was also appointed on 31 March, have met with the CEOs of Standard Bank, Barclays Africa Group, Nedbank and FirstRand and assured them there would be no shift in policy, the Banking Association of South Africa said on 5 April.

Gordhan’s ouster as finance minister in a cabinet reshuffle led to S&P Global Ratings and Fitch Ratings cutting South Africa’s credit rating to sub-investment grade. Moody’s Investors Service has put its assessment of the nation’s debt, which is two levels above junk, on review for a downgrade on 3 April.

Tshwete, the finance minister’s spokesman, didn’t immediately respond to a phone call and text message seeking comment on Malikane’s appointment and role at the treasury.  — (c) 2017 Bloomberg LP

  • MelcolmX

    So the country is run by illiterates! What a marvel idea, for success and vision.

  • The other black guy

    How shallow

  • MelcolmX

    And relax visa requirements from Russia to allow mafiaso to protect the ANC to implement their mindless nuke program that SA can’t afford. Gotta protect the Zombie he’s just been fronted $100m into his offshore account. I’m still freakin black dude!

  • Marcan

    Hmmmm, OMG, Prof Chris Malikane. I heard about two months ago Eusebius McKaiser on Radio 702 interviewing him ,and discussing the NMW, the national minimum wage. Prof Chris talked like an union leader, not like a balanced, educated person, let’s not even talk about an economics prof. A totally clueless leftie, could not even run a small business himself.
    Wits economics department appears to be totally clogged up by these clueless PC lefties. Gilad Isaacs defended already in many articles an unrealistically high NMW on Daily Maverick. Read for example :
    dailymaverick. co. za/article/2016-08-11-op-ed-a-national-minimum-wage-for-south-africa-the-path-to-economic-growth/#.WPR6RmekLIU
    Delete the spaces after the dots.
    Another one is Nicolas Pons-Vignon, read : iol. co. za/capetimes/opinion/removing-zuma-may-not-be-a-panacea-to-solve-sas-problems-8660357
    At least he can see through the empty, vacuous and totally misleading rhetoric of White Monopoly Capital and Radical Economic Transformation.
    And : mg. co. za/article/2017-03-07-00-have-left-leaning-economists-taken-a-vow-of-silence

  • Davebee

    Let’s all hope that MOODY’s executives are also of the opinion that this fugitive from the last Monty Python show, Malikane,is a typical Afro Liberation crackpot who should be laughed at and ignored.
    What I find far more troubling is that Gucci Gigaba, who isn’t exactly the sharpest knife in the drawer (in any field) has this type of dangerous commie stooge whispering sweet nothings on his Galaxy 7.
    Incidentally, if this is what Wits has now degenerated into I guess it really is time to pull the plug on the joint.

  • Davebee

    Not to worry Mel, I’m sure all those sharp as a needle young and old Financial Planners have ol’ Chris Malikane’s knavery built right into those spiffy lap top’s that they use to ‘calculate’ just how much you will be worth on retirement.
    To the cent as well, at least that’s what the ad on my radio says coming from a very large LIBERTY (geddit?) style pensions house.
    Good Lord, where do they dig them up? You really cannot make this stuff up any more, how the Advertising Council let’s them get away with it worries me.
    Doesn’t anyone tell them that predictions are immensely difficult, especially about the future?

  • Fanandala

    In a lighter vain, aren’t all predictions about the future?