We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

State-owned enterprises (SOEs) in SA that have had billions of rand looted through state capture should not be bailed out by the central bank even as they pose a significant fiscal risk, Reserve Bank governor Lesetja Kganyago says. “The challenge of dealing with too-big-to-fail SOEs, of combining cash injections with conditionality measures, needs to be dealt with by the elected authorities — as it has been in the latest budget from the National Treasury,” Kganyago said in an e-mailed copy of a speech on Tuesday. The Bank’s “power to say no was greatly enhanced by its independence,” he said. At least seven SOEs are “either on their knees or touching the carpet” as institutions were damaged due to state capture, public enterprises minister Pravin Gordhan said in February.

PODCAST: Business Day Spotlight – “Eskom is South Africa’s Brexit”..

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now