GHALEB CACHALIA: Post-Covid-19 scenario should involve SAA and Alexkor’s liquidation
Regardless of whether one agrees with the concept of a developmental state, SOEs would be key to any developmental agenda, and SA’s have failed
In a recent interview, public enterprises minister Pravin Gordhan said all state-owned entities (SOEs) must be self-sustaining, “save to the extent that a specific developmental mandate may be given to an SOE, which could be reimbursed either through cross-subsidisation or on the understanding that no dividends are payable to the state but are instead used for developmental purposes”.
Regardless of whether one agrees with the dubious concept of a developmental state, which is characterised by state intervention as well as extensive regulation and planning, SOEs would clearly be key to any developmental agenda. Yet in SA, SOEs are beset by poor governance, weak management, government interference and inevitable corruption. They have, almost without exception, relied on bailouts from the Treasury and many are bankrupt. So much for SOEs and the developmental state...
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