Sinking fast: The perilous state of SA's six big state-owned companies
A high turnover of senior management hobbles their ability to take decisions and massive losses threaten their financial viability
Key state companies and agencies that play a pivotal role in driving the South African economy and distributing essential services are in disarray, as a high turnover of senior management hobbles their ability to take decisions and massive losses threaten their financial viability. The “perilous financial state” of some of the companies may require government bailouts, BMI Research, a unit of Fitch Ratings Ltd., said in a report. We “continue to see the severely weakened financial condition of state-owned enterprises as a significant risk to the country’s fiscal health,” it said. These are some of the worst-affected institutions: Eskom Holdings SOC Ltd. The utility, which provides about 90 percent of South Africa’s power, is struggling to match supply and demand. Eskom last year stalled the sign-off of government-brokered deals to buy green power from independent producers, which were contracted to develop plants after shortages resulted in electricity cuts from 2008, saying it had ...
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