Denel's R1.8 billion bailout not sustainable, says DA
The official opposition has warned against the R1.8 billion bailout of Denel by the government saying it was not sustainable.
DA spokesperson on public enterprises Natasha Mazzone said on Saturday the state arms manufacturer needed an overhaul.
She said throwing money at Denel was not helpful, describing the SOE as a bottomless pit.
“An incredulous amount of the people’s money have been spent on State-Owned Entities and yet the public is getting very little in return,” said Mazzone.
Mazzone said they want the company to be partially privatised.
But the ANC and its alliance partners, Cosatu and the SACP, have objected to any privatisation of SOEs.
The ANC has said it wanted to keep SOEs in the hands of the state.
Cosatu has warned that the privatisation of the SOEs would lead to massive job losses.
It said the privatisation of the entities would give the private sector free reign in how they run the companies and throw out the workers.
It said the entities have a role in contributing to the economy.