ANC mulls business rescue for other SOEs

MAGASHULE: ‘WE ARE NOT PRIVATISING STATE ASSETS’

‘Challenges faced by critical SOEs required a comprehensive approach.’

Although the ANC insists that no stateowned enterprises will be privatised, other entities that need urgent financial assistance might be put under business rescue, particularly Eskom, as government seeks to find a solution.

Speaking yesterday at the ANC’s Luthuli House about the outcomes of the party’s national executive committee (NEC) meeting at the weekend, secretary-general Ace Magashule said they have agreed that the challenges faced by critical state-owned enterprises (SOEs) required a comprehensive approach, as well as bold creative solutions, and that they are considering private financial models to fix all SOEs.

“Cabinet and government will make an announcement in due time. We are not privatising state assets. We are only bringing in equity partners,” Magashule said.

He said the NEC was concerned about the social and economic impact of load shedding by Eskom and the effect it had on jobs, and they have received a report from government regarding the situation at Eskom and South African Airways.

Xubera Institute of Research and Development political analyst Benedict Xolani Dube, however, said government entity business rescue may yet lead to the privatisation of all SOEs.

“The [SOEs] being put under business rescue is a sign leaders in government lack skills and knowledge to run its own entities, hence we move from one crisis to another. Business rescue is a road to privatisation,” Dube said.