Acting Eskom chairman to smooth ruffled feathers
November 11, 2009
Mpho Makwana, who took over from Eskom chairman Bobby Godsell this week, is a leadership strategist and expert in organisational development, strategic change and human resources management.
Makwana is likely to draw on his skills heavily in the weeks ahead as the beleaguered state-owned enterprise deals with the aftermath of the leadership fiasco that led to Godsell's resignation on Monday.
Makwana was appointed in an acting capacity by Public Enterprises Minister Barbara Hogan, who perhaps saw in him the skills to unite and focus an organisation fractured by a public battle to lead the power utility. The need for unity is even more pronounced given the accusations levelled against elements within Eskom by chief executive Jacob Maroga, who has criticised an attitude of what he called "white supervision" and "technocratic arrogance".
Maroga has been backed by organisations such as the ANC Youth League and Black Management Forum, while Godsell has found a not altogether unsurprising ally in the trade unions, with which he developed close links as lead negotiator for the mining industry after a bitter mining strike in 1987. The deal that was brokered is credited as a landmark for the evolution of industrial relations in South Africa.
While Makwana has experience in industrial relations too, the label of "prickly" - sometimes used to describe Godsell - would not aptly describe him.
Makwana is a member of The Alliance for New Humanity, founded by mind-body physician Deepak Chopra as a network for those wanting to create a more compassionate world, and is described in some quarters as an "inspirational communicator".
A former chief executive of Saatchi and Saatchi in South Africa, he also sits on the boards of Educor, environmental group WWF South Africa and the International Marketing Council, and is the founder of investment holding company Epitome Investments.
Yesterday, the softly spoken Makwana said: "I need you to give me some time. We will be releasing a statement this afternoon. Right now, I need some space."
Late yesterday Eskom's media office said no statement would be released.
Don't stuff your stocking
The battle for consumers' hearts and minds is well under way. Retailers have already begun the festive season advertising onslaught with a host of special offers and tantalising treats for Christmas fare.
These firms are hoping that the desire of consumers to treat themselves and their families will supersede common sense and so bolster their bottom line. It has been said before that South Africans can spend like there is no tomorrow, and given our poor savings record and penchant to rack up debt, retailers' hopes may be realised.
On the flip side of this are those urging consumers to be cautious and not get carried away by the festivities. Although this view is not getting as much "column space" as those pushing people to spend.
Peter Setou, a senior manager for education and strategy at the National Credit Regulator, said yesterday that given that consumers are worse off than they were a year ago due to the recession, high inflation and job losses, reckless spending this Christmas season would cause untold financial stress into the new year.
Consumers need to budget and keep an accurate tally on what they will spend this festive season. Consumers should not be tempted, nor give way to social pressures to spend. Rather they should accept their financial limitations; not something South Africans are renowned for.
But putting down on paper the realities of income and daily living expenses will concentrate the mind on exactly what is available for gifts, travel and entertainment over this period. Given that almost a million people have lost their jobs, it is more than likely that retail sales, already fallen, will be muted. For those who can still spend, it is worth pausing for thought before pulling out the credit card as who knows what next year will bring.
Watch this rand space
Economic Development Minister Ebrahim Patel was challenged by journalists at an economic cluster briefing on whether it was appropriate for him, rather than Finance Minister Pravin Gordhan, to make pronouncements on monetary policy.
"We operate as a team in cabinet," he said, adding that all economic ministers supported a competitive exchange rate.
Although he didn't answer the question directly, one supposes that implies that economic cluster ministers have the right to comment on monetary and fiscal policies. It could even include former finance minister Trevor Manuel, who did not crack the nod as a member of the economics cluster.
The debate over Patel's involvement in monetary policy matters follows remarks made by him that "an overvalued exchange rate... of a rand valued too high in markets" made exports more difficult and it encouraged high levels of imports. He said there was a conversation going on in the government about the rand and it would involve trade unions and private sector economists as well as government ministers.
Dismissing earlier reports that his department planned to peg the rand, he said a competitive exchange rate was "a key determinant of a country's competitiveness". Looking at global experience, countries took different views on how to influence the price of their currency. China used direct controls and linked its unit to "a basket of currencies". Brazil had a tax on capital flows to try to influence its unit's value. Chile famously used what economists called "some degree of speed bumps", which were measures to slow the entry and exit of capital. There were many tools, Ebrahim said.
The government had been approached by both business and labour, which were concerned about the damaging effects of volatility, the rapid change of the value of the rand, particularly against the dollar, and other key trading currencies, he noted. The message is: watch this space.
Edited by Peter DeIonno. With contributions by Ingi Salgado, Samantha Enslin-Payne and Donwald Pressly
|
|
