At last key leaders are on the same page about the need for tough love for SOEs
It’s not just a maverick team from the Treasury that wants to end fiscus-sapping bailouts
The recent announcement by finance minister Enoch Godongwana that the government would adopt a “tough-love” approach to state-owned entities (SOEs) will been welcomed by South Africans who have long been concerned about the diversion of scarce resources from social services to bailouts for failing SOEs.
Godongwana revealed during his medium-term budget policy statement that the government had spent R290bn on SOEs since 2013. A year earlier, the National Treasury said R291bn had been spent on bailing out SOEs since 2008. Of that amount, R38.4bn went to SAA. ..