Alan Peat
THE CONTRACT between Portnet and USAid-sponsored privatisational specialist John Arnold has been terminated, according to Vivienne Lipman, director of industrial analysis at the Department of Public Enterprises.
The reason, she told FTW, was that Arnold was exceeding his advisory mandate, and was making decisions that were intended to hurry the pace of privatisation.
But too fast, she added, and before the authorities had time to decide on all the whats, whys and wherefores of the intended privatisation exercise.
His model included getting business units sold off as soon as possible, she said. Some we might, but some we want to retain as companies, and sell off shares.
His 'quickly as possible' is not the best answer. The important thing is to first get the ports working properly.
But this is contrary to what the private sector wants. A number of senior business executives who have already consulted with Arnold felt that his plans were the way things should go.
Portnet, they added, is going the wrong way with its division into port authorities and port operations. The first is acceptable, with Portnet being the landlord of the port facilities. But the operations division tends to be merely a means of smartening up the current in-port business operations, was the general opinion expressed.
This effectively forces businesses interested in being involved in the privatised ports to buy established companies, and possibly pushing the cost up beyond the actual worth of that facility.
The current feeling at the Department of Public Enterprises, along with the Department of Transport and Portnet, is that the whole privatisation advisory concept needs to be rethought.
This, however, will take a couple of months to finalise, said Lipman. We want to wait until the Portnet restructuring details are made available for comment in September, and first see what reaction this will gather.###
Copyright Now Media (Pty) Ltd
No article may be reproduced without the written permission of the editor
To respond to this article send your email to joyo@nowmedia.co.za
