Sell assets now, SA Treasury says. Unions push back
Photo: EPA
INTERNATIONAL – South Africa’s Treasury wants to forge ahead with long-stalled plans to sell state assets to shore up the nation’s shaky finances despite opposition from other government departments and labor unions.
The medium-term budget policy statement painted a picture of an economy in deep trouble, with gross domestic product expansion to average just 1.5% over the next three years while debt and deficit levels are set to soar. The deterioration can largely be attributed to a meltdown at state power utility Eskom Holdings SOC Ltd., which is draining government coffers and relies on bailouts to remain solvent.
A policy paper published by the Treasury in August suggested the sale of some of Eskom’s coal-fired plants could raise 450 billion rand ($30 billion), which equates to its entire debt. But a revised draft published Wednesday made no mention of the issue. That doesn’t mean asset sales are off the table, according to Dondo Mogajane, the Treasury’s director-general.
Source: iol.co.za
