Today's Labour News

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ramaphosa2The Citizen reports that President Cyril Ramaphosa has allayed fears that the government is planning to privatise state-owned enterprises (SOEs) and has given the assurance that the state’s ownership would continue.  

He said the government supported business rescue of SAA because there was no other viable and financially workable option for a credible future for the airline.  “The financial crisis had become so grave that the only way to secure its survival was to take this extraordinary measure.  With the support of lenders, government, management and workers, SAA will continue to operate while the airline undergoes the restructuring needed to make it a viable company,” he stated.  Writing in his latest online weekly newsletter, From the Desk of the President, published on Monday, Ramaphosa said business rescue was not the preferred option for fixing SOEs and it was not necessarily advisable in other circumstances.  “But the resolve we have shown in putting SAA into business rescue cuts across all key SOEs.  Whether it is Transnet or Eskom, Denel or Prasa, we are taking all necessary measures to turn them around,” he indicated.  The government would apply strict conditional support to SOEs in order to sustain them and ensure their self-sufficiency.  It would transparently introduce strategic equity partnership where necessary and appropriate so as to assist with raising capital, injecting skills and technology, and improving efficiency.

  • Read the full original of the report in the above regard by Eric Naki on page 7 of The Citizen of 10 December 2019
  • Read too, We will do what it takes to save our SOEs, Cyril Ramaphosa says, at BusinessLive

Get other news reports at the SA Labour News home page