As Eskom and South African Airways battle with crippling debt and working capital crunches, policy gurus have proposed the use of pension fund savings belonging to government employees, worth R1.8-trillion, to rescue these state-owned enterprises .
Eskom alone requires R128-billion in bailouts over the next three years to stay afloat because it cannot generate enough income to cover its costs, service a debt of R440-billion and interest. Research firm Intellidex has joined calls by market watchers, including former PIC CEO Dan Matjila and others, for GEPF funds to bailout state entities. However, Intellidex is not proposing a blank cheque for state entities, some of which have received taxpayer-funded bailouts without a clear plan on reforming their business models to be profitable and competitive.
Over the last six years, the government has contributed an average of R37.7-billion per year to the GEPF , which amounted to 64% of contributions while employees made 36% of the contributions. The government has increased its borrowing to fund total expenditure, which includes contributions to the GEPF.This broad taxpayer contribution can in part be justified if the GEPF is used to further national interests beyond the interests of pension beneficiaries only.
Sverige Senaste nytt, Sverige Rubriker
Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.
Källa: dailymaverick - 🏆 3. / 84 Läs mer »
THE LEX COLUMN: Toy industry hitting a Lego brick wallThe family-owned Danish toymaker is withstanding business tremors better than listed rivals
Källa: BDliveSA - 🏆 12. / 63 Läs mer »
Källa: dailymaverick - 🏆 3. / 84 Läs mer »