Treasury on Monday said Eskom had not been forthcoming with documents relating to coal contracts with Gupta-owned Tegeta. T Eskom responded by saying Treasury was playing political games.
Dr Azar Jammine, Chief Economist at Econometrix, joins The Midday report's Stephen Grootes to talk about this public spat between Eskom and treasury and what it means for the economy.
It simply illustrates the massive divide that currently exists within the government between those who want to ensure clean governance, and no corruption... and State capture... and others whose interests would seem to be to perpetuate and organise deals that might benefit themselves indirectly through their closeness to the Presidency.— Dr Azar Jammine, Chief Economist Econometix
Jammine says it is all linked to SOEs and State capture.
They all fit into a very neat narrative... with a common thread.— Dr Azar Jammine, Chief Economist Econometix
He says the good news is that the media and the public have woken up to what is going on and are expressing their dismay. The economy is weak, but this is also due to the global economy and commodity prices.
The Rand has fallen as a result of this latest spat.
But, says Jammine it is not a total disaster.
It could be that we are standing at the edge of a turn around in our economy for the better, driven by the realisation that corruption and State capture are not in the interests of the majority of people.— Dr Azar Jammine, Chief Economist Econometix