'People who say the government is not moving fast enough do not understand the complexities of restructuring in South Africa'

KENNEDY MEMANI, special adviser to the Ministry for Public Enterprises, has run and finished three gruelling Comrades marathons. On the way, he has had to negotiate difficult challenges.

As adviser to Stella Sigcau, Memani is viewed as one of the key architects of the restructuring of the state-controlled transport sector, including Transnet.

Problems on the road to privatisation have been plentiful since deputy-president Thabo Mbeki's announcement in December 1995 that SA Airways and Telkom would seek equity partners and that other state-owned assets would be privatised. Protests by labour that government was unilaterally restructuring the economy eventually led to the formation of the National Framework Agreement, which sets out principles and procedures for restructuring state assets by pulling together ministries and labour.

But while government sought "consensus", critics bemoaned the lack of real progress on privatisation.

"People who say that government is not moving fast enough have no understanding of the complexities of restructuring, particularly in South Africa. In the first place it is the responsibility of government to ensure that restructuring meets the state's own objectives," says Memani.

Government has identified the reduction of the state debt, increasing economic ownership, meeting basic needs and creating jobs as some of the objectives of restructuring.

"Notwithstanding that, we needed to consult widely and build consensus with all stakeholders. We are now at a stage where the process of restructuring has reached the implementation phase. We have moved beyond principles onto how to implement the process."

There are indeed visible signs that after numerous false starts, the restructuring process is getting into gear.

This week a timetable was announced for finding strategic equity partners for both SA Airways and the Airports Company before the end of the year. Sun Air will be privatised within six months.

Other state-owned assets which have been identified for privatisation, possibly by the end of the year, include Aventura and Safcol, while Telkom's equity partner is also expected before the year end.

Memani identifies the pension and medical liabilities of transport giant Transnet as a "hanging matter" that need to be resolved.

Memani has emerged as one of several key players in the government's restructuring process.

It is a role he downplays, saying it is the responsibility of everyone, particularly black professionals, to pay back something to government.

Memani attained a B Comm degree at the University of Bophuthatswana (now University of North West) in 1988. He then went on take a post-graduate diploma in accounting at the University of Cape Town and obtained a higher diploma in tax law from the Rand Afrikaans University in 1993. Between 1991 and 1993 he served his articles with the accounting firm Price Waterhouse. He joined the corporate finance division at UAL Merchant Bank in 1994 until he left the following year to form his own financial consulting firm, XKM Financial Advisory Services.

Within a year he had landed an advisory position with the Ministry of Public Enterprises.

His contract expires in February, but it could be extended until government has completed the restructuring process. "I have an obligation to make a contribution to government, but I feel in the end my career is in the private sector and not government. At some stage I will have to start solidifying XKM Financial Services," he says.

When not in the office, he works out in the gym and runs. Three completed Comrades marathons with one silver medal to his name attest to his determination to stay in the race, no matter how tough it gets.

Thabo Kobokoane

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