AND THE NEXT BAILOUT IS . . .

n the nine years to March 2016, SA Airways (SAA), the SA Broadcasting Corp (SABC) and Petrosa reported a staggering R24bn in operational losses. On top of that, these organisations received billions more in cash bailouts — handouts — from the taxpayer almost every year. The latest of these is the R2.2bn finance minister Malusi Gigaba handed SAA last month so it could repay a Standard Chartered

Bank loan.

Yet these organisations remain insolvent. They exist only because government has guaranteed their creditors that it will back them with billions more, should they fail to meet their liabilities. The guarantees to SAA alone stand at R19.1bn.

The figures — taken from the financial accounts of these organisations — represent wasted capital. The more than R40bn (and counting) could have been used more profitably to truly deliver a better life for all.

Instead, under the guise of providing services and jobs for the thousands who work at these institutions, the money has been plundered to enrich a few powerful and corrupt elites.

But these vast sums by no means constitute the last of the money our esteemed leaders will throw into these dark, bottomless holes.

The SABC, SAA and Petrosa will in the next few weeks report their financials for the year to March.

The total bill of operational losses will come in at more than R5bn.

SAA needs another cash injection of at least R14bn to keep flying. The SABC has requested at least R5bn. Petrosa has not yet quantified its required bailout.

These institutions are unable to dig themselves out of the gutter — but by lavishing more capital on them, we are digging an even deeper hole for the nation to sink into. Climbing out of this deep recession and junk-status hole will take a generation to accomplish.

IWhat our politicians in government and their comrades in the trade unions don’t wish to acknowledge is that the state has no valid reason to be involved in any of these businesses — other than to dispense patronage and buy political support, that is. At a stretch, an argument could be made for government to remain in control of some parts of the SABC. But, for a generation now, the state’s costly involvement in Petrosa has been redundant. Government no longer needs to guarantee the supply of oil and vehicle fuel — not that it ever succeeded, in any case. The private sector efficiently filled that role before and since the end of apartheid.

And government’s ownership and needless subsidisation of SAA has only served to hinder the development of a competitive domestic airline industry.

What state ownership has managed to achieve — with distinction — is the entrenchment of corruption across the economy.

Borrowing from Peter to pay Paul

In publicising his newest plan to revive economic growth, Gigaba said he will provide some financial support to SAA. And he said more “soft support” is on the way for Eskom. No doubt there is more support on the way for Petrosa, the SABC and a few other hopeless dens of corruption.

In a letter to parliament, Gigaba also hinted he will sell some noncore state-owned assets to raise the money. Only economics as understood from the Saxonwold Shebeen can be applied in this way.

If all the cash bailouts of the past have not achieved sustainability, how will any more succeed?

Government has already sold its stake in Vodacom to bail out Eskom. Yet Eskom still needs more money. Now, to bail out SAA, government may sell its 39% stake in Telkom.

What will Gigaba sell to fund the next bailout?

The state has no reason to be involved in any of these businesses — other than to dispense patronage and buy political support, that is