SOEs to get R129 billion in bailouts over 3 years
A summary of bailouts of state-owned enterprises (SOEs) over the last 12 years shows how the government has allocated R162 billion to financially distressed SOES.
CAPE TOWN – State-owned enterprises (SOEs) in need of financial assistance will be allocated R129 billion in bailouts over the next three years.
The category of SOEs in question includes the likes of the Airports Company of South Africa (Acsa), Denel, Eskom, Sanral, SAA and Transnet.
A summary of bailouts of SOEs over the last 12 years shows how the government has allocated R162 billion to these financially distressed SOES.
Their total debt amounts to a whopping R759.9 billion, of which 62% is guaranteed by government.
Eskom took the biggest chunk – 82% of the total - or R132.7 billion in the past 12 years.
But Minister Tito Mboweni told a pre-Budget media briefing that Eskom was getting the proper attention and his speech wouldn’t focus much on it.
“We make reference in passing to electricity and Eskom. We don’t want to talk a lot at this Budget Speech because I’m sure the Eskom story is a bit tired now. We didn’t really have anything new to say.”
In his speech Mboweni said government would do whatever it took to stabilise electricity supply.