S. Africans assured troubles at ailing SOEs will be remedied soon
Eskom, SAA and Transnet are just three of the SOEs that have been struggling after years of corruption and mismanagement.
JOHANNESBURG – South Africans have been given assurances that efforts are underway to make sure that some of the country's state-owned entities (SOEs) are restructured or turned around as soon as possible.
Eskom, South African Airways (SAA) and Transnet are just three of the SOEs that have been struggling after years of corruption and mismanagement.
However, those involved in working with Eskom and SAA say their plans are in track to change the situation.
The past 48 hours has seen South Africans being given some hope regarding struggling SOEs.
Treasury says it's working to accelerate plans to restructure Eskom after ratings agency Fitch opted to keep the sovereign credit rating on hold – with a negative outlook.
Treasury, in partnership with the department of public enterprises, is instituting a series of measures to bring discipline to the utility's finances.
It also wants to step up the timeline for restructuring.
Fitch has warned that failure to form a credible plan to stabilise government debt exacerbated by bailouts for troubled state run firms like Eskom could prompt a downgrade.
Other ratings agencies have regularly cited this as one of the key risks to South Africa's economy.
With regards to SAA, the business rescue practitioner involved with the airline, Les Matuson, says its confident of success in saving the airline from liquidation.
The Sunday Times is reporting that a number of former executives at Eskom and Transnet –along with multi-national engineering firms – are set to face arrest within weeks.
The publication says sources have indicated that four Transnet executives, including Brian Molefe, Siyabonga Gama and Anoj Singh are expected to be arrested.
This is in connection with hundreds of millions of rand that were paid irregularly from the two parastatals to various companies.
Hundreds of millions of rand were siphoned from Eskom and Transet with company officials and Gupta-aligned companies benefiting.
The investigation is said to also involve the Federal Bureau of Investigation (FBI) and Security Exchange Commission.
Added to this, the paper is also reporting that a number of leaked emails shows that businessperson Eric Wood has amassed a huge personal empire through deals with the Gupta family and associates.
This was through companies Regiments Capital and Trillian.
Attempts are being made to seize money associated with these irregular payments.