SOE Privatisation: Cosatu does not care about job losses

19 February 2016

Following comments by the Congress of South African Trade Unions (Cosatu) earlier this week the DA will be writing to the Minister of Public Enterprises, Lynne Brown, to not entertain any opposition from Cosatu and to furnish Parliament with a deadline by which the implementation of the privatisation of SOE’s will commence.

It is bizarre for Cosatu to say “SOEs should be funded by the state, through a progressive tax system, retirement funds and insurance” when this very approach has led to the current financial crisis of most State-Owned Entities (SOE’s). This week’s reports have revealed that Cosatu will be stiffly opposing the privatisation of state companies, in the interest of organised labour.

Cosatu claims to be on the side of workers and in doing so fails to appreciate that if the current situation is not dealt with decisively with regards to our SOE’s many more people will be jobless. The strategic privatisation of SOE’s is the last saving grace to keep near-bankrupt entities such as South African Airways’ (SAA), South African Post Office and Eskom afloat. To oppose privatisation is to condemn these entities to their imminent doom.

The most egregious part about Cosatu insisting that SOE’s continue to be funded by the state, is that they are ignoring who ultimately has to bear the burden for the billions that institutions such as SAA haemorrhage yearly. The taxpayer has to suffer in order for SOE’s to be kept afloat despite, some of them being led by inept and negligent leadership.

As we stand, the ANC government has turned a blind eye to inefficient leadership of Dudu Myeni as Chairperson of SAA, Brian Molefe as Chairperson of Eskom and previously, Lucky Montana as CEO of Prasa, the list goes on. Therefore, the DA strongly urges the ANC government not to capitulate to any of Cosatu’s calls to not privatise parastatals.

Now is the time for Zuma and his ANC to stay the course and to not shirk in the face of political pressure from Cosatu. He must institute privatisation despite Cosatu’s clear and unambiguous opposition to the privatisation of state assets.

Whether they want to believe it or not. Bold action is required for SA to move forward, now is the time for the ANC government to lead.

Statement issued by Natasha Mazzone MP, DA Shadow Minister of Public Enterprises, 19 February 2016