Solidarity report indicates SAA is worst state institution
The Solidarity Research Institute (SRI) today, in their report on the state of South African state institutions and the value for tax money, announced that South African Airways (SAA) is the worst of all major state institutions. According to the report, the value SAA offers for taxpayers' money is deplorable.
The report shows that state institutions are poorly managed in general. The second worst institution is Eskom, and the best-managed state institution is Telkom.
The SRI analysed five state institutions, namely Telkom, Eskom, Transnet, PetroSA and SAA. In the report, the state institutions are measured in terms of working capital ratio and net debt before earnings (EBITDA). These accounting ratios have been compared with the ratios of the top 40 companies on the JSA.
Depending on the accounting ratios and general management, the five companies were also placed on a scale depicting the value for tax money. This scale varies between very good, good, neutral, poor, and very poor.
The performance and non-performance of the companies are as follows:
PetroSA: poor
Transnet: very poor
Eskom: very poor (deplorable)
SAA: very poor (deplorable)
Telkom: neutral