The Sunday Independent reports that thousands of employees of state-owned entities are fearful their salaries will not be paid this month unless government steps in and bails out the ailing entities with billions of rand from taxpayers.
While state entities such as the SABC, Denel and SAA downplayed the financial crisis, workers’ unions were concerned salaries and jobs would be affected and vowed to fight for their members.
SABC is reportedly seeking a cash injection of R3.2 billion, Eskom needs R17bn, while SAA requested R4bn, and Denel wants R2.8bn. As a shortterm solution, Finance Minister Tito Mboweni said government would look into the national contingency reserve account, using the Special Appropriations Bill set to be tabled in Parliament in the next two weeks, and bail out the ailing institutions.
Communication Workers Union (CWU) general secretary, Aubrey Tshabalala, blamed national treasury, the minister of communications and the SABC’s board for failing to resolve the dire financial situation at the national broadcaster. Tshabalala said CWU had requested to be part of the turnaround strategy discussions because they have ideas on how to save the SABC, especially around regulations on sporting rights and other services.
On Wednesday, Communications Minister Stella Ndabeni-Abrahams confirmed to Parliament, during her department’s budget vote speech, that the public broadcaster was set to receive interim financial relief from the government within the next 10 days. However, Ndabeni-Abrahams insisted this was dependent on the SABC meeting conditions set out by the government.
The announcement came after reports that Ndabeni-Abrahams and the national treasury had turned down the ailing broadcaster’s application for a financial bailout.
Speaking during the budget vote this week, Public Enterprises Minister Pravin Gordhan tabled a plan to turn around SEOs and emphasised that boards would be held accountable for the financial and operational performance and repositioning of SOE’s.
“After a decade of mismanagement, negligible board and executive fiduciary accountability for poor performance, malfeasance that enabled state capture, and rampant corruption at our biggest SOEs, many are in deep financial difficulties and will be unable to trade their way out of their difficulties,” said Gordhan.
Head of International Liaison for Solidarity Movement, Jaco Kleynhans, said they were concerned about the future of their members as state-owned entities were mismanaged.
“None of the employees are secured or safe in these entities because of their financial challenges,” said Kleynhans.
“The government can bail out these entities but the major problem is mismanagement and corruption. They haven’t managed according to business principles and because of that there’s no sustainability in these companies,” lamented Kleynhans.
National Union of Metalworkers of South Africa (Numsa) spokesperson Phakamile Hlubi-Majola said the union remained in the dark on the situation at Eskom.
“There has been no formal engagements with Eskom regarding the situation at the power utility, and as Numsa, we are hearing of the developments at Eskom and its future from the media. We were hoping that Sona would give directions in terms of what was going to happen, but the president didn’t outline any details.
“What we know is that the unbundling is going ahead and that they will appoint a chief restructuring officer. Beyond that we don’t know anything,” she said.
Hlubi-Majola said the lack of communication between Numsa and the power utility had raised frustrations and anxiety among workers who were concerned about their future and that of the power utility.
South Africa Transport and Allied Workers’ Union (Satawu) spokesperson Zanele Sabela echoed the sentiments of the other unions, calling on government to bail out ailing SOEs.
“State-owned companies are supposed to provide employment and skills, and help the government eliminate the challenges such as poverty and getting rid of inequality in this country,” she said.
The original of the above Sunday Independent report by Manyane Manyane appeared on page 4 of The Sunday Independent of 14 July 2019
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