Posts tagged with 'SOEs'

 

SA’s expected economic growth is adjusted to 0.9% for 2020 – ANC regime is responsible for SA being in such a mess

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The World Bank has just adjusted South Africa’s projected economic growth to 0.9% for 2020 amid the uncertainty surrounding Eskom and load shedding. The 1.3% growth that the World Bank initially predicted for 2019 has now also been adjusted to 0.4%.

In spite of these realities, the ANC clings to the ideology that got us into this troubled position. President Ramaphosa explains what their approach to state-owned companies, so-called strategic assets, will remain:

“As we do this, we are clear that the state will retain ownership of all those state-owned enterprises that are strategic. This is so that these entities are able to perform the crucial economic and developmental functions that the market would not own be able to perform. ”

The government certainly does not intend to relinquish comprehensive state control and trust the free market. In the end, they placed SAA with terrible objection in business rescue – largely th
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Transnet wasted almost R50 billion, most of which is used to buy trains that cannot be used in SA

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State-owned entities are currently under considerable pressure and there is doubt as to how many of them have the ability to continue without the necessary financial assistance.

This is the opinion of Auditor-General Kimi Makwetu, who last week released a national and provincial auditor’s report for the period 2028-2019 in Cape Town.

He says there are weaknesses in the performance of many entities and the roughly 14 state-run institutions that are heavily subsidized by the state and the ANC government apparently did not contribute much to improving their results.

The 14 institutions also spent R1.4bn on illegal spending, and may be further investigated with further investigations.

Denel, the SABC, SA Express shipping company, and the SA Forestry Company are some of the biggest offenders of wrongful expenses incurred.

With Transnet wasting nearly R50bn, the bulk of which has been used to buy trains that cannot be used in SA, a
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14 SOEs rack up more than R1.4 billion in irregular expenditure

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Auditor General (AG) Kimi Makwetu said not one of the 14 big state-owned entities (SOEs) audited by his office received a clean audit, a poorer outcome than last year.

Makwetu was revealing the results of the national and provincial audits for the past financial year at Parliament on Wednesday. He said the financial health of SOEs remained under significant pressure with doubts about whether they could continue operating without further financial help from the government.

Makwetu said the 14 SOEs notched up R1.4 billion in irregular expenditure but warned this figure could rise as four of them – Denel, the SABC, SA Express and the SA Forestry Company could not make full disclosure on this.

Meanwhile, irregular expenditure racked up by Transnet (R49.9 billion) and Eskom (R6.6 billion), who have private auditors, amounted to R57 billion.

“The SA Post Office, for example, has slipped back to a qualified opinion and the Development Bank o
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Taxpayers will now have to bailout the Ramaphosa regime after Moody lost patience with SA’s poor economic situation and proposes a tax increase

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The poor economic conditions, unemployment, little foreign interest, the land grab program, Eskom and other entities’ financial inability are all reasons why the country is in such a mess.

Moody’s has pointed out to the ANC-regime that it will have to raise taxes to fix the mess at Eskom, which is the first step to a series of tax hikes.

With the SABC, Denel, SAL, Eskom, and several other entities failing to be a profitable industry as it was years ago, the regime is pushing to raise taxes.

The poor decision to launch a National Health Plan while the country is in junk status is considered to be one of the stupidest decisions the Ramaphosa regime has yet made, which will also lead to astronomical increases in taxes.

Moving out of professional corps such as doctors, nursing staff, lawyers and others is the strongest indication that the country is heading for an enormous crisis that cannot be reversed.

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Ramaphosa lets the cat out of the bag: The bad news: ‘Our money’s up’

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Ramaphosa acknowledged in parliament on Thursday that South Africa’s financial resources were depleted while the country’s development needs were enormous. He did not say straightforwardly whether he supported “prescribed assets”, he said later, the pension fund industry and other stakeholders needed to talk about using pension fund assets to support the country financially. The country’s money is running out and South Africans’ pension fund assets are becoming an increasingly likely target for the government to pull the wagon through, it became clear on Thursday.

According to Ramaphosa, pension fund assets in other countries are used to invest in the development of the country and pension funds achieve good returns from infrastructure projects in particular. He says the trade union Cosatu supports its view that workers in SA’s pension money are used this way. According to Ramaphosa, this is considered positive by the
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Government employees face 10% salary cut to fund crippling Eskom since National Treasury’s box is empty

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National Treasury director-general Dondo Mogajane has said that the best way to fund the bailout of failing state-owned enterprises could be to cut the salaries of all government employees by 10%, according to a report in the City Press.

The government has to find a way to close a R120-billion hole in its budget, which is the result of acceding to a R59-billion bailout for Eskom as well as a shortfall in tax revenue for the fiscal year ended March 2020.

“National Treasury’s box is empty,” Mogajane said to the City Press.

“Growth is not coming through and tax revenues are not there. We are in trouble. The government needs to reduce spending.”

“If we are going to be serious – without people losing their jobs – let us reduce the salaries and stop the bonuses,” Mogajane said.

In response to this plan, unions said that they would not accept the revocation of bonuses and salary cuts for their workers.

“Any talk
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Cash strapped Denel asks ANC regime for cash injection of R2.8 billion to pay employees salaries and remuneration

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Weapon manufacturer Denel is one of several state-owned enterprises (SOEs) found amid allegations of corruption and statecapture. The entity finds itself in a deep financial crisis and was forced to ask government for a R2.8 billion bailout to pay suppliers and outstanding salaries.

Public Enterprises Minister Pravin Gordhan announced that the company, with the help of a lender, made it possible to pay salaries for the month of June. Meanwhile, it has come to light that although staff salaries have been paid, no pension contributions where paid. Unconfirmed reports say Denel will again struggle in late July to compensate his staff.

Denel CEO Danie du Toit indicated stated that Denel is in negotiating with the banks to obtain bridging finance and has apologized for the tension and anxiety it causes among staff and their families. Since Denel failed to pay its employees ‘salaries in full, staff have been showing a negative attitude towards the comp
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Rothschilds the new Guptas? – Rothschild family accused of preying on South Africa’s state-owned enterprises

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South African unions have joined forces to take on the Rothschild family, which they have accused of being involved in attempts to ‘capture’ the country’s SOEs (State Owned Enterprises).

According to the Citizen tabloid, the NUMSA (National Union of Metalworkers of South Africa) and the SACCA (South African Cabin Crew Association) released a joint statement, claiming that the Rothschilds were “interfering” in SOEs for “selfish and greedy purposes.” The statement alleged that the wealthy family intended to collapse SAA (South African Airways) so it could be privatized.

The Rothschild family is the most famous of all European banking dynasties; for some 200 years, it has had great influence on the economic and, indirectly, the political history of Europe. It also holds stakes in many businesses internationally.

The South African unions said that the Rothschilds were using an alleged link to SAA board member Mark Kingston, who
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If you are white, you are out as tenders go says Pravin Gordhan – there really are no good ANC politicians

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Ironic that Pravin Gordhan was the man who implemented the BBBEE regulations that contributed greatly to the demise of Eskom and other SOE”s and forbade business with any company not under black control.

Ironic because, as the current minister for Public Enterprises, he now has to fix the problems he helped to create previously when he was the minister for Finance.

Gordhan, as minister of Finance, implemented certain regulations in 2017 which were derived from a law enacted in 2000, called The Law on the Framework for Preferential Aquisition Policy.

The regulations implemented under Gordhan gave State Owned Enterprises like Eskom the authority to implement their own discretionary and arbitrary minimum black economic empowerment requirements.

These regulations come down to the race based exclusion of companies not under black control. As experience has taught us, these regulations were used to empower a small elite , very well connected
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Ramaphosa rejects privatization of SOE’s although the whole lot is poorly managed by incompetent staff, and cost SA billions of rands

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President Cyril Ramaphosa has reaffirmed government’s plans to support ailing state-owned enterprises (SOEs) and made it clear that there’s no intention to privatise them.

Ramaphosa was replying to debate on his State of the Nation Address at a joint sitting of Parliament on Wednesday.

He did not respond directly to criticism from opposition benches, instead saying he welcomed all the inputs made and insisted the government had a clear plan to reignite the economy and halt the jobs bloodbath.

Ramaphosa said SOEs had a critical role to play and won’t be privatised.

“The successful takeover of the distribution of Sassa grants by the Post Office is a clear demonstration that government institutions do have the capacity and the capability to implement projects of great magnitude,” he said.

Before taking over the task last April, only 31,000 beneficiaries were paid through the Post Office. Ramaphosa said last month, that numbe
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