By Nyaniso Qwesha
The turnaround of state-owned entities is an urgent matter that needs to be sorted and given the necessary attention by our government.
Government finances are not in sound financial health, and this requires all the SOE captains to be on board to revitalise the entities. Let the SOEs drive South Africa’s economic recovery. The sooner they return to operational excellence, the better our government finances. As it is said, we can’t be doing the same thing year in and year out, bailing out SOEs and expecting a different outcome.
We can ensure the money given to SAA is used for business rescue, as the minister assured us in the Budget. How will be the financing of its operational activities be done?
I don’t think we would be solving the problem if we ignored the operational requirements; we would be prolonging the entity’s suffering. It is clear that, as a country, we won’t let SAA fail.
If we believe we can’t let it die, let us instead ensure that all the funding requirements are considered, to ensure that we don’t return to the Treasury for extra future funding. If the entities are funded appropriately, specifically this entity, it would enable general public criticism to be directed appropriately. If we succeed with the entity’s turnaround, it would be good for SAA and the country, and would serve as a model for other struggling SOEs.
It also needs to be noted that the recovery would be about funding requirements and governance systems. We need to ensure that the SOE-turnaround strategy can focus on one entity to implement the appropriate governance systems, employing a board that would be thoughtful, entrepreneurial and supported by an executive management that understands the industry.
SOEs, especially SAA, are bringing their begging bowl when given the opportunity. Let SAA change its fortunes. It used to be part of the exemplary entities, and we need to get there again.
The Ministry of Finance’s involvement should not end after transferring the R10.5 billion; it should be involved in the turnaround strategy. SAA’s operational survival can be used as a prototype in future SOE revitalisation.
The Star