Troubled SOEs on top of ANC's agenda

ANC Secretary General Ace Magashule says fixing Eskom and other state-owned entities top the governing party's agenda. Courtesy #DStv403

JOHANNESBURG - ANC Secretary General Ace Magashule says fixing Eskom and other state-owned entities top the governing party's agenda.

He was speaking during a media briefing at Luthuli House after a three-day ANC NEC Lekgotla on Tuesday.

"Lekgotla also identified current challenges facing Eskom as a national crisis and noting the threat that this poses, Lekgotla resolved that fixing Eskom and SAA and other entities should be a priority,” he said.

READ: SAA CEO Vuyani Jarana resigns

Recently, two CEO’s resigned from the biggest state-owned enterprises in less than two weeks.

On Sunday, SAA CEO Vuyani Jarana tendered his resignation and the week before that it was Phakamani Hadebe from Eskom.

READ: Eskom CEO Phakamani Hadebe steps down

The resignations come at a time when the state-owned entities are struggling to stay afloat.

In his budget speech, Finance Minister Tito Mboweni questioned the need for SOEs.

He said the SOEs pose a very serious risk to the fiscal framework.

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

Mboweni said, "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".

Source
eNCA