One wonders how a steady political hand like that of the late Essop Pahad would have handled some of the events that have unfolded under President Cyril Ramaphosa's administration.
Pahad was minister in the Presidency during the Thabo Mbeki era and made a name for himself as the ultimate political enforcer.
He came to mind this week at least twice: first when minister in the Presidency Khumbudzo Ntshavheni accused the private sector of working to overthrow the government. Then Nedbank announced Jason Quinn of Absa as its CEO designate. How would Pahad or the Mbeki administration have handled these events?
I suspect Pahad would have had a conversation with Nedbank chair Daniel Mminele. There would have been no doubt that he would be speaking for the pipe-smoking “chief” himself. The backdrop would be about “transformation”.
Quinn is a highly regarded banker, and even though his appointment raises eyebrows on race grounds in some quarters, no-one questions his competence. However, the question concerns Nedbank's history as the only bank in the top four that has never had a black CEO. More than just black faces at the top, questions would be asked about its succession planning. It has two prominent leaders who could have been considered — Ciko Thomas, managing executive: consumer banking, and COO Mfundo Nkuhlu.
Of course, there were many other possibilities. Another outsider would have been former MTN CEO Rob Shuter, considering that the “fintech” phenomenon has seen banks and telecoms become one animal. Maybe Kuben Naidoo, who recently resigned as a deputy governor at the South African Reserve Bank, would have been on some minds.
The state needs private sector support in courting investors. However, because of her bazooka approach, a foreign investor may question the veracity of positivity in the private sector when the government accuses it of working to overthrow the state
It is easy to see why Mminele and his board opted for Quinn. Mminele worked closely with Quinn at Absa, from which he had a bloody exit, while Quinn lost out to Arrie Rautenbach, who became CEO last year. The Nedbank chair might have wanted someone he trusted, instead of relying on the likes of Thomas and Nkuhlu.
The Mbeki era was synonymous with black representation, in economic transformation deals or a strong push for black executive appointments. The early 2000s saw Ramaphosa, Patrice Motsepe, Saki Macozoma, Bridgette Radebe and others swimming in serious BEE cash. Enter Jacob Zuma, who introduced his version of transformation, moving all opportunities he could to the Zuptas.
Ramaphosa's views and plans on transformation are muted. Granted, it is hard to conduct BEE deals when the economy is in bad shape. There are many levers the government can rely on to drive economic inclusion. One is government spending, another is to keep challenging the private sector on its transformation agenda. In an environment in which the state is as weak as it is, the private sector can do as it likes. It is easy to find companies without adequate black representation. Absa comes to mind, Nedbank too.
Don't get me wrong, pan-Africanism does not imply white executives should not be promoted. What is essential is an all-encompassing strategy to transform businesses and society. Executive appointments are not the be-all and end-all of transformation. Operational layers like credit committees and their lending criteria are an important part of the conversation about levelling the playing field for black consumers and businesses seeking credit.
Many would-be entrepreneurs need equity: a hand that can pull them up. This nuance in the discourse gets lost in the transformation debate because it was hijacked by rogues like the guy previously known as Jimmy Manyi.
Meanwhile, the Ramaphosa administration bastardises everything that vaguely needs consideration.
The backdrop to Ntshavheni's remarks is the rand manipulation scandal. She could easily blast the parties involved instead of making broad statements. The problem is, she is shooting the same government in the foot. The state needs private sector support in courting investors. However, because of her bazooka approach, a foreign investor may question the veracity of positivity in the private sector when the government accuses it of working to overthrow the state.
A confident government would benefit from quality, substantive conversations with business leaders, not blasting them from a distance. Since Ntshavheni speaks for the cabinet, it is safe to assume her views came out of the cabinet, chaired by Ramaphosa.
• Mkokeli is lead partner at public affairs consultancy Mkokeli Advisory
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