Signs of recovery at some state-owned companies

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Will centralisation of oversight in a single holding company lead to further improvement, and less waste and corruption?

The aggregate financial performance of SA’s SOEs has improved, but the extent of the losses is unknown since some of the large, poorly-managed entities have not published annual reports for years. Image: Siphiwe Sibeko/Reuters

Eskom, Transnet, South African Airways , SA Express , arms manufacturer Denel, Alexkor diamond mine, and forestry company Safcol reported to the department. PetroSA and Denel have not published financial statements since 2020. PetroSA’s losses have probably continued, while Denel management has stated – without evidence or convincing arguments – that things are improving.

The first thing apparent from the table is that the aggregate performance of the state companies deteriorated from 2017 to 2021.However, the loss in 2021 most probably exceeded R40 billion because PetroSA’s loss must still be added. The PetroSA posted a loss of nearly R5.6 billion in its 2020 financial year.

The bulk of the improvement in 2022 can be attributed to a turnaround at Transnet, from a loss of nearly R8.4 billion to a profit of more than R5 billion.

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