GOVERNANCE at two of the most problematic state-owned enterprises (SOEs) is likely to be deepened after Finance Minister Malusi Gigaba announced new measures this week. Gigaba is hard-pressed to salvage his credibility and, by extension, that of the Treasury by implementing interventions to limit the drain on the fiscus and allow funds to be reprioritised. Weak economic growth in the first quarter of 2017 and multiple downgrades of the government's credit rating to junk status meant "our 2017 growth projection of 1.3% may not be realised", he said at a press conference on Thursday. The climbdown comes ahead of a meeting in two weeks with President Jacob Zuma, where a detailed plan of action for the economy and timelines to implement these plans is to be established. Gigaba said at a meeting with Zuma on Wednesday evening and at presentations before the cabinet last week that he was "extremely candid about the risks we are facing". A significant challenge will be to raise revenue - a...
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