EFF's Shivambu calls on govt to establish sovereign wealth fund

EFF Chief Whip Floyd Shivambu had advice for President Cyril Ramaphosa on how to keep state-owned companies on the straight and narrow.

FILE: EFF chief whip Floyd Shivambu. Picture: Supplied

CAPE TOWN – South Africa should set up a sovereign wealth fund and a special commission to oversee state-owned companies.

It should also crack down on tax avoidance schemes used by big businesses.

That's the advice from the Economic Freedom Fighters to President Cyril Ramaphosa from the party's chief whip, Floyd Shivambu.

“Why is it that South Africa can’t establish a sovereign wealth fund that’s going to earn money for the people of South Africa all over the world through strategic investments?”

Shivambu also had advice on how to keep state-owned companies on the straight and narrow.

“You must establish a state-owned assets supervision and administration and commission, similar to the Sassa organisation that exists for the oversight of state-owned companies.”

Shivambu says more than 100 Chinese state-owned companies are listed among the world's top 500 companies.

He says single ministries should no longer be in charge of state-owned companies, so that there is greater accountability.

Shivambu also says the government should crack down on tax avoidance.

“Legislate clearly on what we do with the billions of rands that are being lost to creative accounting practices of almost all the multi-national companies that exist in South Africa.”