The appointment of businessman Tokyo Sexwale as minister responsible for housing could create a conflict of interest headache for the ANC.
Sexwale is assessing the effect of his business interests on his new portfolio, while the ruling party says he will have to declare.
President Jacob Zuma announced that Sexwale would head the Ministry of Human Settlements, previously the Housing Ministry.
Sexwale is executive chairperson and co-founder of diversified business group Mvelaphanda Holdings, which has interests in construction, mining, banking and property. The ruling party tried to avoid deploying Sexwale to portfolios that would create an obvious conflict of interest for him such as Mining, which is now a separate ministry, or Trade and Industry.
But the Human Settlement portfolio could create an even bigger headache as Mvelaphanda has invested in construction firm Group Five, which specialises in construction and engineering.
The company's website boasts that its building and housing components are concentrated around mass and residential housing, healthcare and educational facilities and commercial retail developments.
Ironically, some small construction companies complained to now Justice Minister Jeff Radebe about Group Five and other big construction consortiums' dominance in the sector during an elections meeting in Sandton late last year.
The Housing Department deals mostly with the mass construction of low-cost houses as part of the ANC's promises to eradicate shacks and provide decent houses.
Economist Iraj Abedian of Pan African Investments said while a portfolio such as mining would have created an immediate problem for Sexwale, his appointment as Minister of Human Settlements also created a potential conflict of interest for the businessman.
"Housing is a little more remote, but (conflict of interest) doesn't disappear because Mvelaphanda has massive property development (interests) which could create a conflict of interest as evident as in mining," he said.
Abedian said, however, that Sexwale would be forced to leave the business world altogether due to his inclusion in cabinet.
Meanwhile, the ANC cautiously avoided giving its national executive committee member Siphiwe Nyanda a security-related portfolio to avoid a conflict of interest as he has a stake in arms companies.
Nyanda, a former military general, has been appointed Minister of Communications.
- Pretoria News
Sexwale is assessing the effect of his business interests on his new portfolio, while the ruling party says he will have to declare.
President Jacob Zuma announced that Sexwale would head the Ministry of Human Settlements, previously the Housing Ministry.
Sexwale is executive chairperson and co-founder of diversified business group Mvelaphanda Holdings, which has interests in construction, mining, banking and property. The ruling party tried to avoid deploying Sexwale to portfolios that would create an obvious conflict of interest for him such as Mining, which is now a separate ministry, or Trade and Industry.
| Housing is a little more remote |
The company's website boasts that its building and housing components are concentrated around mass and residential housing, healthcare and educational facilities and commercial retail developments.
Ironically, some small construction companies complained to now Justice Minister Jeff Radebe about Group Five and other big construction consortiums' dominance in the sector during an elections meeting in Sandton late last year.
The Housing Department deals mostly with the mass construction of low-cost houses as part of the ANC's promises to eradicate shacks and provide decent houses.
Economist Iraj Abedian of Pan African Investments said while a portfolio such as mining would have created an immediate problem for Sexwale, his appointment as Minister of Human Settlements also created a potential conflict of interest for the businessman.
"Housing is a little more remote, but (conflict of interest) doesn't disappear because Mvelaphanda has massive property development (interests) which could create a conflict of interest as evident as in mining," he said.
Abedian said, however, that Sexwale would be forced to leave the business world altogether due to his inclusion in cabinet.
"The fact is whether he is Minister of Finance or Housing; he would have to leave his businesses. He can't be (executive) chairman of Mvelaphanda and minister of whatever at the same time," he said.She said Sexwale would be required to declare his business interests. Sexwale's spokesperson Chris Vick said Sexwale's business interests would be declared and recorded in the register of members' interests to ensure transparency.
ANC spokesperson Lindiwe Zulu said: "People think he will start giving himself tenders, but he's way beyond that. He has made enough money already," she said.
Meanwhile, the ANC cautiously avoided giving its national executive committee member Siphiwe Nyanda a security-related portfolio to avoid a conflict of interest as he has a stake in arms companies.
Nyanda, a former military general, has been appointed Minister of Communications.
- Pretoria News
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