Treasury weighing options on calls for Transnet cash injection - Godongwana
The State-owned logistics company, which has been plagued by several issues, has blamed its poor performance on shortages of maintenance funds, infrastructure vandalism and corruption.
Finance Minister Enoch Godongwana. Picture: X/@Treasury_RSA
JOHANNESBURG - Minister of Finance Enoch Godongwana says Treasury is weighing its options on calls for a cash injection for embattled logistics company Transnet.
The State-owned company has blamed its poor operational performance on a shortage of funds for maintenance, vandalism to its infrastructure and corruption.
In the latest series of challenges, backlogs at some of the country’s major ports dented economic growth.
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National Treasury recently granted Transnet a R47 billion guarantee facility to help manage its ballooning debt.
However, the dysfunctional company is still believed to be short of cash to fund its recovery plan.
“We are working with Transnet to understand exactly the nature of the problem. We are still doing the numbers on a day-to-day basis. But key for us is that we need logistics to work. We need logistics to work because it’s quite critical for the economy.”