'Nothing sinister' about Zuma ruling parastatals

There is nothing sinister about President Jacob Zuma taking over state-owned companies, the Presidency said in a statement yesterday, according to a BDlive report. ‘There has been intense speculation since the announcement this week, with some commentators and journalists suggesting some sinister motives behind the establishment of the council. Such speculation is baseless and false,’ the Presidency said. The Presidency was emphatic that the new structure under the President would not directly run projects or ‘usurp responsibilities’ of line-function Ministers. On Monday, after a Cabinet lekgotla it was announced that Zuma would directly oversee the strategy of state-owned companies and any government intervention made in them through the creation of the special presidential co-ordinating committee that he would chair. The decision to place Zuma at the apex of decision making in state-owned companies came amid significant tension within the government over state-owned companies particularly between SAA and Denel and the Treasury.