IFP president Velenkosini Hlabisa Picture: Nhlanhla Phillips/African News Agency (ANA)
IFP president Velenkosini Hlabisa Picture: Nhlanhla Phillips/African News Agency (ANA)

IFP wants SOEs privatised

By Siviwe Feketha Time of article published Mar 5, 2020

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Johannesburg - The IFP has called for the privatisation of state-owned enterprises to relieve the government of the burden of having to bail them out financially.

Speaking on the second day of the annual Black Business Council, IFP president Velenkosini Hlabisa said the country’s SOEs had harmed the country’s economy as they no longer served the purpose they were created for.

“For years, the IFP has been calling for the privatisation of SOEs. The damage done to our economy by under-performing and corruption-ridden SOEs has brought us to the brink of disaster. 

"New thinking is also urgently required as to the present and future role of our SOEs,” Hlabisa said.

He highlighted that while his party realised the strategic role the SOEs were set up for, it was concerned about them having become a huge financial drain of taxpayers’ funds.

“We should not ignore how much damage they have done and continue to do to the very fabric of our country’s economic integrity,” Hlabisa said.

He added that the State had to play a limited role in, and allow the private sector to run the economy of the country.

Hlabisa’s comments come as major SOEs are facing financial and operational challenges, including Eskom and SAA, which has now been placed under business rescue.

On Monday, Public Service and Administration Senzo Mchunu said some of the SOEs were a major strain on the public purse as they were draining it instead of contributing to it.

The move to partial privates SOEs is, however, opposed by several political parties, including the EFF and some within the ANC.

Political Bureau

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