R96 billion lost in two years

South African state-owned entities (SOEs), including Eskom and the SAA, have accumulated losses amounting to R96 billion over the past two years.

This is according to the DA, which wrote to Minister of Public Enterprises Pravin Gordhan requesting a full-scale review of South Africa’s failing and debt-ridden SOEs.

National Treasury’s 2019 Consolidated Financial Statement report revealed that SOEs racked up a consolidated loss of R50.65 billion in 2016/17 and R45.82 billion in 2017/18.

“These financial losses increase on a daily basis and are proof that the status quo is no longer feasible,” the DA said.

The party argued that South Africa’s SOEs must, as a matter of urgency, be completely overhauled.

“Their insurmountable debt poses great risks to our economy and our societies, as many of them are bankrupt and unable to provide the services they are mandated to deliver,” the DA said.

The party added that several SOEs duplicate functions and should not even exist in the first place.

“We cannot be sentimental about SOEs when they add little to no value to the people of South Africa and the economy. The country’s is in crisis, it therefore requires urgent reforms, starting with Eskom.”

Now read: Eskom to stop replacing substations, transformers in areas where people don’t pay

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R96 billion lost in two years