Turning something into nothing
Would you invest your life savings in a dodgy company, losing billions each year, insolvent and run by a close friend of the president, qualified as a primary school teacher? Minister Gigaba would. Your money, that is; not his. The minister’s parliamentary pension is safely invested in a fund quite separate from that of over a million officials whose Government Employees’ Pension Fund (GEPF) is administered by the Public Investment Corporation (PIC).
The minister is expected to announce during September that around ten billion Rand is to be handed over to South African Airways as a lifeboat to cover its debts and give it some running capital. One option he is considering is to use GEPF money from the PIC for this purpose.
A further question is the following: if you had precious savings invested in good shares in Telkom that are paying dividends and increasing in value, would you sell them and give your money to SAA to waste? Believe it or not, this is another option the minister is considering.
Apart from SAA and the SABC, which is also in a financial jam, there is a whole string of other state-owned enterprises (SOEs) waiting in line for government handouts.
Remember that there is little prospect, if any, of SAA ever becoming profitable under state management.