LETTER: It’s time to declare Denel bankrupt
Bailout shows our government still does not grasp how serious our financial situation is
The Treasury decision — obviously taken with the approval of President Cyril Ramaphosa — to fritter away another R1.8bn on Denel ominously signals that our government still does not grasp the seriousness of SA’s financial crisis. Like Eskom and other state-owned entities crippled by corruption and mismanagement, Denel is unfixable and must be placed into bankruptcy.
Against numerous warnings, including an “affordability study”, the Treasury 20 years ago colluded with the nonsensical proposition that the arms deal would magically stimulate SA’s economic development. The ANC has evidently still not learnt the elementary lesson that wasting public money does not create jobs but instead compounds the problem...
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