EDITORIAL: More than diligence needed
Gordhan’s timely intervention has staunched the loss of blood at state-owned enterprises. But that is only the first step
Public Enterprises Minister Pravin Gordhan has in the space of a few months blazed through the boards of SA’s three biggest publicly owned corporations in an effort to "recapture", in his words, the institutions.It has been a satisfyingly brutal exercise. No one knows exactly how much was stolen from the big three, but the prima facie amounts are staggering. Gordhan himself estimates that the amounts involved could be R100bn.In the case of logistics giant Transnet, he did not even wait for cabinet approval, establishing an interim board while the process of finalising the board members is completed. This is someone in a hurry, and in Gordhan’s speech to Parliament on his budget, it emerges why.Many of the state-owned enterprises (SOEs) are in a desperate financial state, far worse than the most pessimistic suggestions. Gordhan confirmed that Denel experienced "severe liquidity constraints". This was linked to state capture, which resulted in financial institutions withdrawing credit...
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.