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State Capture To Blame For State Of SOEs: Parly’s Public Enterprises Committee

CAPE TOWN – A report by Parliament’s public enterprises portfolio committee has on Monday noted the sad state of state-owned enterprises (SOE), saying all challenges faced by these companies were a direct consequence of state capture.

An oversight report published this week follows recent visits and inspections of the key SOEs like the South African Airways (SAA), Denel and Transnet.

The committee said the companies had similar challenges that included a breakdown of structures, corruption, malfeasance and financial sustainability challenges.

The oversight report on SOEs comes as another committee of Parliament, Scopa, prepares for its own visit to trouble SAA this week.

The public enterprises committee report states that all challenges are a direct result of state capture.

On SAA the committee notes that the company has a debt of R12.7 billion, which comprises of R9.2 billion legacy debt and R3.5 billion working capital facility.

Switching its focus to SA Express, the committee said the challenges facing the regional airline included zero accountability and shortage of skills.

EWN

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