Mboweni unsure of SOEs

While Eskom is being bailed out, there was no mention in the budget speech of the country's other state-owned enterprises, who are also hoping for a handout. Courtesy #Dstv403

JOHANNESBURG - While Eskom is being bailed out, there was no mention in the budget speech of the country's other state-owned enterprises, who are also hoping for a handout.

In fact, Finance Minister Tito Mboweni is wondering whether there is a need for SOE's at all.

Mboweni said in his budget speech that the SOE's pose a very serious risk to the fiscal framework.

READ: SOEs take centre stage on Ramaphosa's India visit

"Funding requests from SAA, SABC, Denel, Eskom, and other financially challenged state-owned enterprises have increased, with several requesting state support just to continue operating."

Mboweni says financial support will be based on the strategic needs and whether the government can afford it.

READ: Budget speech 2019: All eyes on Mboweni

Public entities registered a cash surplus of R8.4-billion in 2017/18 driven mainly by Prasa's lower spending on planned capital projects. 

Denel was given a further R1-billion and the SAA's guaranteed debt increased by R6-billion.

Mboweni made his views clear during his briefing with the media, saying, “if it was up to me I would rather give money to Prasa and Railway than give money to SAA.

Source
eNCA