Parly’s public enterprises committee raises concerns over corruption at SOEs
The committee concluded its week-long oversight visits at the Department of Public Enterprises and at SOEs, including South African Airways, Denel and Transnet in Gauteng on Saturday.
CAPE TOWN – Parliament’s portfolio committee on public enterprises says it’s concerned about the challenges state-owned entities (SOEs) are facing like corruption and malfeasance.
Committee chairperson Khaya Magaxa said they had identified various financial constraints at these institutions related to low levels of revenue and high operational costs.
Magaxa said an example of this was the grounding of SA Express this week.
“In actual fact, there are mechanism plans in place that sought to address that particular problem. And we are happy to be informed that even Treasury is on board [and] a certain amount has already been committed to paying Acsa [Airports Company South Africa] in that regard,” he said.
Acsa lifted its three-day suspension of the airline on Friday after it made a partial payment on its R71 million debt.
Now it needs a Treasury guarantee to access more funding to keep it airborne. SA Express was granted a R1.2 billion guarantee but that was swallowed by historic debt.
They have now secured a R300 million facility from the banks but need a R200 million guarantee from Treasury to put it in use.
Additional reporting by Kgomotso Modise.