Why are we sending Mo Shaik to Harvard?
The Development Bank of South Africa (DBSA) has a responsibility to ensure that whoever is appointed to head its International Division is properly qualified and able to manage the bank's offshore investments.
In this regard, Finance Minister Pravin Gordhan needs to assure the South African public that an appropriate candidate will be employed. This position should not be filled by a candidate "deployed" because of his political connections.
Minister Gordhan should also answer the allegations in yesterday's Sunday Times that taxpayer's money is being used to send Mr Mo Shaik to Harvard Business School (HBS) to "prepare him" for the post (see here).
It is doubtful whether an executive leadership-training course at Harvard would be sufficient preparation for the head of the DBSA's international division if the candidate did not have a background in banking or financial management.
Furthermore, the R100 000 estimated by the Sunday Times as the cost of the course could just be the tip of the iceberg. "Comprehensive Leadership Programmes" at Harvard costs from $41 000 to $68 000 (R320 000 to R530 000). That is even before other costs like travel and accommodation have been included.
I will be submitting the following Parliamentary Questions to the Minister of Finance:
- Is, or was, Mr Shaik a candidate for the post as head of the international division of the DBSA - either through being headhunted or applying?
- What is the justification for the apparent funding of an executive leadership-training course at Harvard for Mr Shaik?
- What is the exact cost to the South African taxpayer of Mr Shaik's trip and studies in the USA?
- What other benefits are included in Mr Shaik's "separation package" from the State Security Agency?
- Whether public expenditure on a training course for a departing official is acceptable under the Public Finance Management Act?
The DBSA is an institution with a critical role to play in the development of our country and continent. It is important that key positions are held by people with the proper qualifications and competencies to drive the agenda of the bank.
Media speculation earlier this month suggested that President Jacob Zuma might be attempting to move Mo Shaik to that position. We agree with the Chairman of the DBSA, Mr Jabu Moleketi, that every South African, including Mr Shaik, has the right to apply for the position.
We do, however, want to be assured that appropriate processes are followed, and that candidates are not simply "deployed".
Statement issued by Tim Harris MP, DA Shadow Minister of Finance, May 7 2012
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