These days Paul Mashatile is more famous for swiping his credit card than attracting investment. But Mashatile, now the Gauteng minister for finance and economic affairs, will weather the storm.
He is a survivor. As an activist in Alexandra in the 1980s, he was president of the Alexandra Youth Congress, and office-holder for the United Democratic Front. Unaware of his underground work for the ANC, the community labelled him a sell-out for his relationship with a local councillor.
Since 1994, he has served in the Gauteng legislature: first as leader of the house, and later as a provincial minister. Mashatile has held the portfolios of transport and public works, safety and security, housing, and now finance and economic affairs.
During his tenure in the housing portfolio, Mashatile oversaw widespread corruption investigations. But in 2004, the DA’s Butch Steyn said only two people had been suspended as a result, though the investigations had cost more than R3-million.
Mashatile’s most recent stint in the headlines concerned the R96 000 bill for a dinner he hosted at one of Sandton’s swankiest restaurants, to celebrate his budget speech. The Star newspaper reported that he had Âallegedly spent more than R250 000 on entertainment, on his government credit card, between February and June. His office has been quick to point out that his hospitality is within the bounds of public spending.
So he enjoys the high life. What’s wrong with a swig or two of French champagne with a few hundred close friends after a hard day’s work?
It’s true that Mashatile does have a lot to look after. The treasury and the department of economic development are two separate departments in Gauteng. Mashatile is responsible for both, as well as agencies such as Blue IQ, Geda (Gauteng Economic Development Agency), the Gauteng Tourism Authority, the Gauteng Gambling Board, the Gauteng Film Office, the Gauteng Enterprise Propeller and the Gauteng Shared Services Centre, which provides support services for government departments.
As if this wasn’t enough, Mashatile chairs the Gautrain political committee and is responsible for the Gauteng Provincial Government Precinct. He is the political head of the Dinokeng and the Cradle of Humankind World Heritage site projects.
“Judging by the number of departments, agencies and projects under his leadership, Mashatile holds one of the most strategic positions in Gauteng and arguably in our country. Add this to the fact that he presides over our country’s largest economy and Africa’s fourth-largest economy, then one can understand the magnitude and significance of his responsibilities,” his spokesÂperson, Percy Mthimkulu, told the Mail & Guardian.
There’s a lot of money going through the department and some of it, at least, is being spent on more than fancy dinners. Through Blue IQ, which aims to stimulate investment through infrastructure development, the government has spent more than R2-billion to date.
This agency has invested in infrastructure projects such as the City Deep transport logistics hub, the Kliptown regeneration project and the Gauteng Automotive Cluster.
Then there’s the support for small business. “Through the establishment of the Gauteng Enterprise Propeller, we expect to provide comprehensive financial and non-financial support to more than 30 000 SMMEs by 2014,” Mthimkulu says. R300-million has been set aside for this purpose and the local government is partnering with other institutions for this.
Gauteng is aiming for 8% growth by 2014. “Barring any externalities that may negatively affect our economy, we are confident that we will achieve our target,” says Mthimkulu.
It hasn’t all been plain sailing. Allegations of corruption centre on the Gauteng Shared Services Centre and the housing department.
The centre’s audit unit has been slammed by the DA for protecting corrupt individuals. Whistle-blower Pascalis Mokupo, who leaked a report exposing tender irregularities in housing, has been dismissed, apparently for “dishonesty”, Business Day reported. The qualifications of senior staff have also been questioned.
According to Mokupo, housing officials signed a R75-million infrastructure contract when an amount of only R44-million had been approved. Three other contracts, totalling R76-million, were allegedly signed without following tender procedures, Mokupo told The Star.
Mashatile did not make himself available for an interview.