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
09 December 2019 - 14:18
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...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.