The Sunday Independent reports that thousands of employees of state-owned entities (SOEs) are fearful their salaries will not be paid this month unless government steps in and bails out the ailing entities with billions of rands from taxpayers.
While entities such as the SA Broadcasting Corporation (SABC), Denel and SA Airways (SAA) have downplayed the financial crisis, workers’ unions are concerned salaries and jobs will be affected and have vowed to fight for their members. SABC is reportedly seeking a cash injection of R3.2 billion, Eskom needs R17bn, while SAA has requested R4bn, and Denel wants R2.8bn. As a short-term solution, Finance Minister Tito Mboweni said government would look into using the national contingency reserve account to bail out the ailing institutions, using the Special Appropriations Bill to be tabled in Parliament in the next two weeks. Speaking during the budget vote last week, Public Enterprises Minister Pravin Gordhan tabled a plan to turn SEOs around, emphasising that boards would be held accountable for the financial and operational performance and repositioning of the organisations. “After a decade of mismanagement, negligible board and executive fiduciary accountability for poor performance, malfeasance that enabled state capture, and rampant corruption at our biggest SOEs, many are in deep financial difficulties and will be unable to trade their way out of their difficulties,” said Gordhan. Head of International Liaison for the Solidarity Movement, Jaco Kleynhans, said they were concerned about the future of their members at SOEs. “None of the employees are secured or safe in these entities because of their financial challenges. The government can bail out these entities but the major problem is mismanagement and corruption. They haven’t managed according to business principles and because of that there’s no sustainability in these companies,” Kleynhans observed.
- Read more of Manyane Manyane’s report in The Sunday Independent in the above regard at SA Labour News
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