MPs hear Treasury has ramped up monitoring of Transnet, other struggling SOEs
Along with Eskom, Transnet has been singled out for being a major contributor to slow economic growth and consequently, lower than forecast revenue collection.
CAPE TOWN - National Treasury says it’s intensified the monitoring of struggling state-owned enterprises, particularly Transnet.
Parliament heard this week that the freight logistics company was drowning in debt of over R130 billion.
On Friday, Treasury told a joint meeting of Parliament’s finance committees that it’s adopted a two-pronged approach to Transnet’s problems in determining whether it can support a bailout.
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Along with Eskom, Transnet has been singled out for being a major contributor to slow economic growth and consequently, lower than forecast revenue collection.
The Treasury says it’s considering the immediate financial problems faced by Transnet, as well as the development and implementation of a plan that will deal with the company’s structural inefficiencies that have led to declining rail volumes and slow movement in the ports.
Treasury director for sectoral oversight, Phatu Rasivhetshele explains.
"Our work together with the national logistics crisis committee, which we are a member of, is to ensure that Transnet’s corporate plan is aligned with the work we are doing in the NLCC - we do anticipate that this will take a few months."
Transnet has reported a loss of R5.7 billion for the 2022/23 financial year.
