Business Leadership South Africa CEO Michael Spicer on Wednesday lambasted recent political interference surrounding the appointment of a new CEO at State transport utility Transnet, and even chastised President Jacob Zuma for having been too "late and mild" in his rebuke of those involved.

His criticism came as Judge Brian Spilg of the Johannesburg High Court dismissed, with costs, an application brought against the State-owned enterprise (SoE) by suspended Transnet Freight Rail CEO Siyabonga Gama to halt disciplinary proceedings and overturn his suspension. Gama and his supporters perceived the proceedings as being nothing more than a "witch hunt" to prevent his elevation to the position of group CEO.

Speaking at a function in Johannesburg organised by SwissCham South Africa, Spicer, whose organisation represents the largest 80 domestic and foreign companies operating in the country, described the Ministerial and party political intervention as a "concern".

"Bypassing the board of Transnet and supporting candidates who have ethical and reputational challenges just won't do.

"Unfortunately, the slap on the wrist that President Zuma gave to those who had been interfering, namely Ministers [Jeff] Radebe and [Siphiwe] Nyanda, was late and mild," Spicer added. Their actions could undermine and "intimidate" Public Enterprises Minister Barbara Hogan, whose prerogative it was to make the appointment.

He even argued that the interference posed something of an economic risk.

"The risks of this are plainly to be seen from the SABC experience," Spicer said, referring to the near collapse of the board at the South African Broadcasting Corporation.

"But whilst there was no initial economic interest from the institutional failure of the SABC, Transnet occupies a central position in the economy and indeed in the Africa National Congress' vision for reinvigorating economic growth," Spicer averred.

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In the same address, Spicer called for greater competition not only within the private sector (which had been shown to be wanting in this regard by the unearthing of cartel behaviour by the competition authorities), but also within areas dominated by the public sector.

"The real opportunities for increasing competition in the South African economy and its overall competitiveness internationally now lie in introducing competition and contestability into the monopolistic State-owned enterprise sector," he said. The current lack of competition and associated inefficiency, was leading to high and sharply increasing administered prices.

Business was especially keen to play a role in the R787-billion infrastructure programme, where the State and its SoEs were facing major challenges in raising funding for projects, especially within the energy milieu.

"This provides an opportunity for proposing more of a private sector role both in funding and rolling out that infrastructure," Spicer argued.

Given Eskom's material funding challenges, there was an opportunity for partnerships with the private sector on its R385-billion build programme and not merely in the creation of independent power production and cogeneration, which was also vital.

In fact, Spicer felt the entire architecture of the energy sector in South Africa should be revisited.

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