Paras­tatals ‘won’t be sold’

TURN­AROUND STRAT­EGY: RAMAPHOSA IN­SISTS STATE-OWNED EN­TER­PRISES CAN BE SAVED

The Citizen (KZN) - - News - Eric Naki

Govt sup­ports SAA busi­ness res­cue be­cause there is no other vi­able op­tion.

Pres­i­dent Cyril Ramaphosa has al­layed fears that the gov­ern­ment is plan­ning to pri­va­tise the state-owned en­ter­prises (SOEs) and has as­sured that the state’s own­er­ship will con­tinue.

He said the gov­ern­ment sup­ported

South African Air­ways busi­ness res­cue 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 said.

Writ­ing in his lat­est on­line weekly news­let­ter, From the Desk of the Pres­i­dent, pub­lished yes­ter­day, 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 said.

The gov­ern­ment would ap­ply strict con­di­tional sup­port to SOEs in or­der to sus­tain them and en­sure their self-suf­fi­ciency.

“As we do this work, we are clear that the state will re­tain own­er­ship of all those sta­te­owned en­ter­prises that are strategic. This is so that these en­ti­ties are able to per­form the cru­cial eco­nomic and de­vel­op­men­tal

State will re­tain own­er­ship of all state-owned en­ter­prises

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