‘Tough love’ for ailing SOEs as finance minister closes tap

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Finance minister Enoch Godongwana has opted to “practise tough love” regarding struggling SOEs, saying their performance will have to drastically improve before receiving any further bailouts from the government.

“We’ve not made provision, for now, in the MTBPS; whether we’ll make something in February, I doubt it.

“Our posture at the moment is that there’s no incentive for people to work hard and be efficient and make sure we can derive value for money. So we’re going to be demanding before we can start bailing people out.” He also reported that the financial position of the top 10 borrowing SOEs had deteriorated in the past 10 years, with interest-bearing debt rising more than 230% since 2010, from R266bn to R883bn in 2021.

 

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