While you’re being convinced that His Excellency, Jacob Gedleyihlekisa Zuma is ruining South Africa, it emerged that Mr President has positioned South African State Companies to create about 120,000 jobs and as well, gain R5.4 billion.
This is according to Lynne Brown, the Public Enterprise Minister.
While the Minister was briefing the portfolio committee on Wednesday, she disclosed that South African State Companies recorded a profit of R5.4 billion for the 2015/16 financial year.
According to the Minister, the companies are also, creating direct employment for about 120,000 South Africans. Brown said:
“The analysis of the performance of SOCs (State Owned Companies) clearly shows that these companies are contributing positively to the South African economy and they are advancing the developmental obligations of the State.
All of the SOCs within my portfolio have continued to operate and meet the mandates that they were established for.
Eskom is keeping the lights on, Transnet is moving freight that is important for the South African economy.”
Aside SA Express (SAX), Minister Brown asserted that the SOCs under her watch have maintain positive external audit outcomes.
She acknowledged that SAX is faced with profitability and liquidity challenges. Partly, the challenges are because the company experienced delay in raising loans since March 2015.
SAX has not been able to fulfill its debt payment obligations. And, many of its aircraft aren’t working due to maintenance issues, the Minister disclosed.
She said: “improving governance is at the core of the SOC (SAX) reform and will remain an important part of SOCs’ performance assessment.
“The department continues to strive to minimize vacancy rate at the board as well as executive levels,” Brown added.
Again, she identified that the department has developed a logical planning, monitoring and evaluation framework that outlines the major steps in the exercise of the oversight mandate.
“Our SOCs are financially viable and have not defaulted on any loans guaranteed by the Government of South Africa. They continue to raise funding in both domestic and international markets at very favorable and competitive rates,” she bragged.
Referring to Transnet, the Minister reveled that the South African rail, port and pipeline company would spend over R200 billion on infrastructures in the next 10 years.
“This must be applauded as most companies are substantially cutting off their capital budgets. This commitment shows the significance of maintaining State ownership in these companies and their sustainability must be protected.
“Since 2007, Transnet has implemented an expansion programme that responds to South Africa’s industrialization requirements. The company has also started processes to explore new revenue stream to improve the long-term sustainability of the company,” she said.
Brown also referred to Eskom and bragged that the South African electricity public utility has retained positive financial performance as it netted a profit of R4.6 billion in the 2015/16 financial year.
The Minister said Eskom has implemented a number of interventions to eliminate the electricity challenge South Africa experienced towards the end of 2014.
“The company has added over 2 000MW of new generating capacity. This has also been accompanied by an aggressive maintenance plan,” Minister Brown remarked.