Carrim: Repeated bailouts to SOEs must stop
On Wednesday, Finance Minister Malusi Gigaba announced that South African Airways and the South African Post Office would get government bailouts to the tune of just over R13 billlion.
CAPE TOWN - African National Congress Member of Parliament and chairperson of the Standing Committee on Finance, Yunus Carrim, says that government should attach stringent conditions to money allocated to ailing state-owned entities.
Carrim says that repeated bailouts need to come to an end. But in cases where they aren't avoidable, strict conditions should be attached.
“This allocation of money constantly to bailout SOEs that are ailing has to be stopped. And where the money is given, because circumstances dictate it, there should be very stringent conditions going with it. So, we welcome the minister’s focus on ensuring that effective boards are appointed, that the management appointed by the boards is competent.”