Political interference to blame for broken SOEs, execs tell Ramaphosa
Durban - President Cyril Ramaphosa has promised to fix State-Owned Entities after he met with top officials from the entities.
The meeting in Pretoria on Wednesday comes after Eskom Chief Executive Phakamani Hadebe and his counterpart at SAA Vuyani Jarana quit in a space of weeks.
Ramaphosa, who chairs the coordinating council on SOEs, said he understood the frustrations at the entities.
“This engagement has raised several critical areas that limit the ability of SOEs to drive growth and development. These range from inadequate capitalisation and poor governance to outdated legislation and political interference. As government, we are committed to work with the leadership of SOEs and stakeholders,” said Ramaphosa.
Several SOEs are facing serious financial challenges with SAA owing creditors billions of rands and Eskom sitting on a debt of more than R420 billion.
The National Treasury has in the past pumped billions of rands in bailouts to some of the embattled SOEs.
Ramaphosa said they will work with entities to ensure they remained financially viable.