NEVA MAKGETLA: No need to subsidise a state company just to replicate private operators
Without an explicit developmental function, state-owned companies such as SAA are given a blank cheque
Does your local state school or clinic make a profit? It seems unlikely. Even in the richest suburbs their income doesn’t cover the services they provide. But no-one expects them to be shut down just because they depend on government subsidies.
The same logic should apply to SAA. Admittedly, its losses are on a different order of magnitude. Few neighbourhood schools or clinics manage to burn through R5bn a year or run up debts of R12bn. No other state-owned company (SOC) makes anywhere near the same losses relative to its size and assets.