R330 billion spent on bailing out SOEs since 2013
National Treasury says government has spent over R330 billion bailing out state-owned enterprises since 2013.
More than half of this has been spent on Eskom, which received over R180 billion.
Deputy Director-General Duncan Pieterse has told the Standing Committee on Public Accounts (SCOPA), that many of these entities struggle because of the weaknesses in their boards and their ability to fulfill their oversight role.
He says many of these entities have had a decline in their performance over the past decade. He added that their failure to perform has had a negative impact on the fiscal framework.
“The various bailouts for Eskom, but also for SAA, SABC, Post Office and others have become a financial burden and these debt level have crowded out important social and other expenditure.”
Source: SABC News (sabcnews.com)