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ANC's Transnet Mismanagement Threatens South African Economy: Rob Hersov

Published September 21, 2023
8 months ago

Activist and globally renowned entrepreneur Rob Hersov has issued a stern warning regarding the deterioration of state-owned enterprises (SOEs) in South Africa due to the dysfunctional cadre deployment of the ruling African National Congress (ANC). Hersov's primary concern lies with Transnet, the state's struggling rail network, which he refers to as the ANC's "misguided asteroid."

Hersov criticises the ANC's tactic of placing party members into pivotal roles within these SOEs as it has led to economic decline, epitomised by the dwindling efficiency of ESKOM and SAA where ANC-appointed officials have been reportedly misdirecting funds for personal and party benefits.

Hersov argues that abolishing cadre deployment is necessary for restoring these state institutions. He warns of the impending catastrophe that awaits the nation's economy unless serious reform is undertaken, saving not just Transnet but also the South African economy from further degeneration.

According to Hersov, under the ANC's supervision, Transnet has observed a remarkable drop in passenger rail travel and cargo transport, indicating a severe fall in Transnet revenue and suggesting its rapid decline. He insinuates the ANC's active role in this decline, pointing out the shift from rail to road transport as exemplified by the N3 highway, which connects Durban to Pietermaritzburg.

Worse, Transnet CEO Portia Derby's unqualified appointment fits perfectly into the cadre deployment mould that Hersov criticises. The mismanagement extended to procurement decisions during Zuma's era, specifically the purchase of Chinese locomotives at inflated prices, further plunging Transnet into a crisis.

As a result, not only is Transnet in dire financial straits, but so too are any businesses heavily dependent on them. Hersov's warning is clear: the impending Transnet collapse threatens to pull the entire economy down with it. The ongoing mismanagement and corruption by the ANC cadre is leading to an imminent disaster, with Transnet being the biggest causality.

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