Pretoria: Finance Minister Pravin Gordhan says the Development Bank of Southern Africa followed the appropriate processes in its appointment of Mo Shaik as the CEO of Development Bank International (DBI), a division of DBSA.
“I have noted the media statement issued by the Democratic Alliance’s Shadow Minister of Finance announcing the DA’s intention to ask me to explain the process followed in the appointment of Mr R. Shaik as the CEO of Development Bank International,” said Gordhan on Thursday.
The minister explained that the Chair of the Board of the DBSA and a committee of the Board were responsible for the appointment process.
“I am informed by the chair that the following process was followed: The process of selecting the CEO of DBI involved the advertisement of the post internally within the DBSA as well as the appointment of an executive headhunting agency.
“Nine candidates were identified, of whom four were shortlisted, completed psychometric assessments and were interviewed by a subcommittee of the DBSA board of directors.
“In fairness to the four shortlisted candidates, I am not going to disclose their names. Such disclosure would serve no purpose other than to embarrass people who agreed to step forward for consideration as CEO of the DBI on the understanding that their participation in the process would be treated in the strictest of confidence,” said Gordhan.
After the interviews, two candidates were eliminated and of the remaining two, Mr Shaik was rated as the best fit for the position.
“In its recommendation, the board found Mr Shaik to have strong networks and relationships within the [Southern Africa] Development Community, all of which have been assessed as key to the success of the Development Bank International.
“Mr Shaik also displayed strong analytical skills and a deep understanding of national priorities, all of which can be partly attributed to the various positions that he has occupied in government since 1994.”
Gordhan said Shaik’s lack of experience in running a commercial enterprise was made up for by his recent training at the Harvard Business School.
“I believe the DBSA has followed proper processes in making this appointment, which I support,” added the minister.
The DBI will play a vital role in enhancing the development of infrastructure projects in Southern Africa, which in turn will promote regional integration and create a more dynamic and interconnected economy in the region.