Posts tagged with 'bailouts'

 

ANC-regime stretching public finances by issuing bailouts to keep bankrupt SEO’s afloat – Denel requests a R2.8bn bailout from government

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South Africa’s state arms company, Denel as requested a R2.8-billion ($200-million) bailout from government.

Denel was once part of the country’s thriving defence industry but like many other state owned entities was mismanaged and affected by corruption during the former president Jacob Zuma years which lead to a financial crisis.

CEO Danie du Toit was appointed late in 2018 to oversee a turnaround plan for the company.

Du Toit says that the Denel is progressing well and he expects around R30-billion worth of deals to come into affect over the next two years but in order to achieve this the company requires a cash injection to help alleviate liquidity constraints.

Denel manufactures military equipment such as armoured vehicles, missiles, attack helicopters and ammunition for the South African armed forces as well as for export.

The CEO is hoping to receive the funds by September or October.

Last year Saudi Arabia’s st
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How much taxpayers money has been thrown into SAA’s black hole to stay afloat?

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Billions and billions have been thrown at The South African Airways (SAA), but the airline don’t have much to show for it. It’s hard to recall a time when the limpest of all our state-owned entities was successful on its own two feet.  It has a history of relying on fiscal interventions, needing contributions from both private firms and the taxpayer just to stay airborne.  Over the last 20 years, their borrowing has been obscene, merely a few days ago the board has requested yet another  additional R4 billion to stay afloat this financial year.

According to a SAA spokesperson the company requested the R4 billion bailout as it has been operating at a loss since 2011. The entity needs has approximately R450 million a month  to keep operations running. The airline’s generated revenue of R30.4bn in 2016-17 while operating costs amounted to R30.9bn. Finance costs totalled R835m and the operating loss was R533m. The losses have continued into
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Just something to think about with regards to SA taxes that will leave you shocked!

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Taxpayers should not foot the bill for ANC government’s failures.  We need to look deeper into our system of government, and how we allocate risk and reward, responsibility and accountability.

At this moment, if you earned R100, you pay R33 income tax. You are left with R67. You buy R67 worth of fuel, pay 48% of taxes and levies on that fuel. R32. So from the R100 that you earned, you payed the government about R70 and kept R30. And if you spend that R30, 15%, R4.50, is VAT. And what did the government do with all your money? Nothing really except squandering it on everything except creating real value. Then they target you with racist legislation and blame you for the mess they created. And when you comment and ask questions in the media you’re branded a racist and unpatriotic and negative and should rather leave the country.

SA is currently facing a challenging time, with persistent issues in the economy weighing things down. A constrained b
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