SOEs share a common problem, and it’s liquidity, says Pravin Gordhan
The Black Business Council and the public enterprises minister have discussed corruption and state capture, ways to stabilise the SOEs and board appointments
Public Enterprise Minister Pravin Gordhan has indicated that the common problem in the country’s state-owned enterprises (SOEs) is a liquidity issue, the Black Business Council (BBC) said on Thursday.
The council met Gordhan to discuss issues surrounding SOEs, focusing on corruption and state capture, the department’s strategy to stabilise the entities to ensure they are profitable, and the appointment of boards.
BBC secretary-general George Sebulela said Gordhan had given the council a breakdown on what the issues were in each SOE individually.
"On a common bases, a lot of them were [facing] a liquidity issue. They need working capital in order to fund projects. This is one of the issues [he] is going to work hard on in conjunction with the boards appointed in those particular SOEs," Sebulela said.
SA’s SOEs have been in embroiled in allegations of state capture and many of them were looted.
Sebulela, however, said the liquidity issues at the entities could not be blamed only on maladministration, fruitless expenditure and corruption, but also the state of the economy.
"Growth of the economy also has a direct impact on growth of SOEs," he said.
Sebulela said the changing of SOE boards was the first step to address the issues.