Government employees face salary cuts to help fund Eskom

Cius

Executive Member
Joined
Jan 20, 2009
Messages
6,133
This storm has been building since Zuma took office. The debt climbed as he had government borrow against the overspend. Now that we are at the edge of the junk status cliff and we can't really borrow any more + all the chickens are coming home to roost from the years of looting the ANC has two options.

Option 1: Cut spending. Only real way to do this is to cut headcount or cut salaries. There is little else they can cut

Option 2: Print money and collapse the economy

Option 3: Default on debt

Option 1 is the right answer but they do not have the political will to make this happen as I see it. That leaves the two death options of 2 and 3. Ace clearly wants to head to option 2. Either way we are pretty much screwed. There is a solution to this crises but Ramaphosa can't do what has to be done as if he does the other faction in the ANC will use it to take him down due to how unpopular it is. They will know they are taking power at that point of essentially a failed state but they won't care provided they can remain rich. If Ramphosa can somehow get rid of key Zuma allies fast and then do the painful step perhaps there is a chance. Still, not sure how they will dig themselves out of this as it requires them doing several things they have never been able to do (live within a budget, manage competently, solve SOE financial crises, and most of all face down the unions).
 

akescpt

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Aug 12, 2008
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21,460
never gonna happen. the unions are so far up their ass it will be dead in the water as soon as its mentioned!! the obvios solution of stealing less is just lost on them.
 

MrR

Expert Member
Joined
Aug 22, 2013
Messages
2,414
This solution isn't fit for purpose - it's not the right solution to the Eskom problem.

The mindless government administrators already give zero f's to provide a service to the public; that service is not good by any means. Cut their salaries and we'll be seeing even less service delivery.
 

BBSA

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Jul 11, 2005
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14,353
never gonna happen. the unions are so far up their ass it will be dead in the water as soon as its mentioned!! the obvios solution of stealing less is just lost on them.
Why would you steal less if there are no consequences for stealing?
 

Radorn

Well-Known Member
Joined
Nov 15, 2017
Messages
190
Possibly, I just know that Eskom has a very big homeloan book, and if not interest free, it's probably very low interest.
It's actually prime minus 0.25 for mid level employees and minus 2 for senior/management I think.
 

j4ck455

Executive Member
Joined
Jan 2, 2006
Messages
5,901
Diamonds?

Boet, they took Gold, and USD.
Diamonds are pretty worthless as a convertible currency.
https://www.google.co.za/search?q=fireblade+diamonds

It probably has something to do with the cost and feasibility of transporting gold versus diamonds on a plane (the Guptas had two planes IIRC).
it would be seized & disappear ??
While you are entitled to believe the UAE's propaganda about taxi drivers not stealing gold bars and cash from locals:
https://www.google.co.za/search?q=emirates+gold+bar+taxi
locals there would not hesitate to confiscate assets from foreigners after sending them to jail or sending them to the airport.
 

Gaz{M}

Executive Member
Joined
Feb 9, 2005
Messages
6,231
Spend some time on twitter and see Eskom "Foundation" building schools and other bullshit, giving away food parcels and painting orphanages. Get rid of all non-core business units at Eskom. They don't need a foundation. Government has a department for housing and social services. Why does every SOE have these ancillary departments that need to employ salaried people to perform Government social functions. Close anything and everything that doesn't generate or transmit power cost effectively.
 

Craig

Honorary Master
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Feb 22, 2016
Messages
18,843
Holy ****, those are high salaries for seemingly low positions. They should start cutting there.
 

thechamp

Honorary Master
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Feb 26, 2011
Messages
28,125
Holy ****, those are high salaries for seemingly low positions. They should start cutting there.
Exactly this, talk about cutting costs yet they go on as usual, I am also very positive that some minister is refusing to use their predecessor's car and instead hires expensive cars to move around.
 

Craig

Honorary Master
Joined
Feb 22, 2016
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18,843
Exactly this, talk about cutting costs yet they go on as usual, I am also very positive that some minister is refusing to use their predecessor's car and instead hires expensive cars to move around.
But they want to cut salaries of others. They should start right at the top. It's not as if they will resign in protest, who else will pay those useless bastards for anything.
 

Hemi300c

Honorary Master
Joined
Dec 15, 2009
Messages
21,538
Holy ****, those are high salaries for seemingly low positions. They should start cutting there.
It's easy to pay when it's money for mohala and you got it for free without any work or hassle.

Just like everything they have touched the anc and cadres have fvcked it up. Eskom was once the best energy provider in the world and now junk the same goes for many other SOE's etc.
 

3WA

Executive Member
Joined
Sep 25, 2012
Messages
8,782
Holy ****, those are high salaries for seemingly low positions. They should start cutting there.
One thing history teaches us, when a leader cuts the salary of their chef or waiter, that leader will soon be eating glass or poison.
 

Craig

Honorary Master
Joined
Feb 22, 2016
Messages
18,843
One thing history teaches us, when a leader cuts the salary of their chef or waiter, that leader will soon be eating glass or poison.
Why would it have been that high in the first place? Unless it was made high because friends and family was placed there.
 
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