ON THE SPOT
As the going gets even tougher, the tough turn to turnaround strategies
Consolidated Infrastructure Group (CIG) must be thanking its lucky stars that Steinhoff’s implosion and EOH’s unfolding stock market collapse have stolen the limelight this week. Until Steinhoff’s meltdown, CIG was this year’s corporate train wreck as losses in its Conco power division began seeping out. Business Day asked the construction firm’s CEO, Raoul Gamsu, whether it was actually possible to have a handle on multiyear, multicountry infrastructure projects. I think that we should have known, we should have had greater insight. We take it on the chin, we’ve grown too fast, too hard ... but until you do final contract assessment it’s difficult. You’ve set out a remedial plan that implies massive micromanagement — can you pull it off? We can. Firstly, outside of isolated occurrences, the contracts aren’t losing money. But it takes a cultural shift, it takes us improving all aspects around management, information. Our build-up of work in progress and how we funded our clients ove...
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