Readers’Views
Privatisation the only way to get failing SOEs back on track
We cannot go on having state-owned enterprises drain our fiscus of funds that should be spent on social upliftment, “Look at all sides of privatisation before we go jumping in” (April 1). What is not being addressed is an honest analysis of why they have deteriorated since the ANC takeover.
We know most messed up badly. But there exists a reluctance to admit the uncomfortable reality that, among other selection problems, cadre deployment condemned many SOEs to inexperienced and often incompetent managers to run complex operations.
This incompetence extended to an inability to ensure staff on the ground provided 100% quality work and services. Part of this problem is their highly unionised workforces, who were allowed to get away with working at levels below the high standards required in SOEs. They cannot be run like public service departments.
The result is we have reached a stage where privatisation has become essential. With privatisation will come the drive to make the business succeed. Competition is an essential element in driving a business to survive and make a profit. The public service and SOEs lack that motivation.
A sense of urgency is missing. The private sector generally requires professionalism and a high work ethic.
Management of SOEs (and in the public service) will deny this failure. But then where are the results? Why the mess and failure?
There is little doubt that our SOEs need to be saved from themselves by a serious privatisation drive. Only then will their essential functions provide the results needed to boost the South African economy.
They can no longer be subsidised by the taxpayer to the detriment of other crucial areas needing fiscus funding for social upliftment.
Ron Legg, Hillcrest
Is the increase in VAT legal?
What is the legality of the increase in VAT? Is it legal for banks, financial institutions, stores and retailers to charge 15% on any contract purchase, personal loans, home loans and other forms of loans that were entered into before April 1 this year?
I ask this because I feel strongly about this increase on old contracts and/or purchases.
Are financial institutions not taking advantage of consumers? Did the finance minister deliberately omit to clarify this issue? If so, how can this be stopped?
Tankiso Lebina, by e-mail
The consequences of the increase in VAT and other tariffs are enormous.
Policies are cancelled. Contracts are cancelled. Shares are dumped. Investment portfolios are closed. Personnel are retrenched.
South Africans are again being asked to “foot the bill” for mismanagement that is worse than obscene.
Every time the consumer cuts back on expenditure in order to save, it is neutralised by requests for tariff increases. Economists cannot deny these trends, and if they do they have not experienced it themselves.
Freddy, by e-mail