Minister Pravin Gordhan revealed the government gave R233.6 billion in bailouts to SOEs over five years and only received R1 million in dividends. Imagine, we should have the best airline, electricity supply etc. in the world but we don’t have anything Ask Mr. Gordhan to present the AG report over the same period… Where is all that money gone, Mr. Gordhan? Surely, there is accountability in Gov before signing next billions.
SAns should agree that prevention is better than cure, or in this case, after thoughts & finger pointing. We need to take back the sovereignty of SA as a nation because this evil greed is destroying all that’s left. Time for a new system & new leaders(collective). SOE’s play a much wider role than providing profits to shareholders.
How many jobs (direct or indirect) did the capital injection create or save?
How many businesses were enabled that would not have existed (due to lack of access to opportunities in the private sector)?
Perhaps there is something wrong with the corporate governance model of SOEs? How many shareholders would regard this as a successful ROI? Oh, I forgot, this has to do with the ROI for entrepreneurs. Then very successful. This is largely due to a change in policy pushed through by Alec Erwin in 2004 (with help from the ANC and COSATU).
In 2000, the Cabinet approved a policy for the partial privatization of the key SOEs to introduce some competition into key state monopoly markets. That’s nothing, government is making 2 trillion out of our tax, what is it for? Paying them to go around complaining about using our money for good purposes? SOEs are not profitable entities.
The bailouts are resulting in increased government debt and less government infrastructure investment. China SOEs make profits and Saudi Aramco makes profits etc., only SA SOE don’t make profits, kills black exec careers, Eskom is finished because of that mentality. 1) What gain does the Rand issuing state get from making a return in R?
2) How would state surplus (SOE profit) which pvt sector deficit benefit SAn pvt sector or economy while demand, employment & growth is too low?
3) Was the less than 1% of GDP a year spent on Eskom enough?
Minister Pravin Gordhan revealed the government gave R233.6 billion in bailouts to SOEs over five years and only received R1 million in dividends – a total return of -99.99957%.https://t.co/FijPEtK0N7
— Daily Investor (@DailyInvestorSA) June 5, 2023