LETTER: How to fix our state-owned entities
We need to corporatise most of the country’s institutions
I recently saw that SAA expects to turn around by 2021 and will need a further capital injection of R21bn by then. Don’t hold your breath.
The government has systematically impoverished its people over the past 25 years. It has done this through gross mismanagement of state-owned enterprises — Eskom, the Post Office, the SABC and SAA in particular.
The solution? We need to corporatise most of the country’s institutions. This has been done for some already, but Denel, the SA National Roads Agency and others need to be corporatised.
Once this is done, the shares in these corporations ought to be distributed to those South Africans who were disadvantaged prior to 1994.
With these companies in private hands, they will put their energy into making profits, which will mean more taxes and better jobs. A considerable number of people will lose their jobs, but they will own shares that appreciate in value as profits increase.
SA will have capped the bailout of these corporations — no longer will the taxpayer be responsible for mismanagement. SA’s credit rating will improve and our borrowing costs will drop as a result.
This will also go a long way towards redress for those disadvantaged by apartheid. There will be a virtuous circle whereby higher profits will mean wealthier people, more taxes paid, and greater skills development in the workplace as these companies adopt international best practice.
We can solve our problems.