South Africans need affordable food, not more SOEs
4 November 2022
Just one week after the Minister delivered his mid-year adjustment budget comes the startling news that government wants to gamble with hard earned taxpayer money by establishing yet another state-owned enterprise (SOE) in the form a national shipping carrier. This in addition to government’s will of funding a Post Bank that is to also be capitalized with taxpayers’ money.
After delivering his “tough love” maiden speech as the new Minister of Finance, Mr Godongwana assured South Africans that he would not tolerate the endless bailouts to failed SOEs and he would take a stand. As expected, his stance never lasted long.
By tabling a Bill with his MTBPS to give R30 billion in bailouts to the failed state enterprises Denel, Transnet and SANRAL, the Minister is effectively incentivising bad management and corruption. Although he mentioned that strict conditions would be attached to the bailouts, no mention was made of what they are, and they are unlikely to ever be implemented.
The Minister also took it upon himself to, in the coming months, transfer upwards of R200 billion in debt from Eskom to the national balance sheet - increasing the load on an already overburdened tax base.