LETTER: ‘Racist’ predictions have come to pass
Tito Mboweni is wasting good money on SOEs that are simply unfixable
It is irrational, and thus unconstitutional, for finance minister Tito Mboweni to pour good money after bad on Eskom, SAA, Denel and other bankrupt state-owned enterprises. (“SOEs a big drain for years to come (https://www.businesslive.co.za/fm/special-reports/2020-02-27-big-issue-soes-a-big-drain-for-years-to-come/)”, February 27). They are unfixable, but also unfit for purpose in the 21st century, and should accordingly be put into liquidation.
The cabinet was warned in 1999 that the arms deal was a reckless proposition that would lead the government and country into mounting fiscal, economic and financial difficulties. The cabinet also got numerous warnings that Eskom was a disaster in the making. Such warnings were dismissed as “racist”. Parliament was informed last week that with just one exception all SOEs operate at huge financial losses...
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