LETTER: Junk rating sends a message
Downgrade shows it is time for the government to wake up and free the fiscus of its albatross SOEs
The DA has been at the forefront of calls over many years to release the fiscus from the burden posed by bankrupt state-owned enterprises (SOEs) such as SAA and to privatise Eskom’s power plants, along with the introduction of a significantly more liberal regime governing independent power producers (IPPs).
The Moody’s Investors Service credit rating downgrade now underscores the need for this to happen. It is time for government to wake up — no attempt to hide behind the effects of Covid-19 will suffice. If fact, liquidation and privatisation will free up capital to assist in fighting the pandemic.
Time has run out. It’s official: our investment status is now junk.
Ghaleb Cachalia, MP
DA shadow public enterprises minister
JOIN THE DISCUSSION: Send us an e-mail with your comments. Letters of more than 300 words will be edited for length. Send your letter by e-mail to firstname.lastname@example.org. Anonymous correspondence will not be published. Writers should include a daytime telephone number.