SIKONATHI MANTSHANTSHA: And the next bailout is ...
The state has no reason to be involved in any of these businesses — other than to dispense patronage and buy political support, that is
In the nine years to March 2016, SA Airways (SAA), the SA Broadcasting Corp (SABC) and PetroSA reported a staggering R24bn in operational losses. On top of that, these organisations received billions more in cash bailouts — handouts — from the taxpayer almost every year. The latest of these is the R2.2bn finance minister Malusi Gigaba handed SAA last month so it could repay a Standard Chartered Bank loan. Yet these organisations remain insolvent. They exist only because government has guaranteed their creditors that it will back them with billions more, should they fail to meet their liabilities. The guarantees to SAA alone stand at R19.1bn. The figures — taken from the financial accounts of these organisations — represent wasted capital. The more than R40bn (and counting) could have been used more profitably to truly deliver a better life for all. Instead, under the guise of providing services and jobs for the thousands who work at these institutions, the money has been plundered t...
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.