S.Africa: created Parastatals are failing: SOEs are bleeding South Africa dry

(:E-:N-:R-AZ:C-30:V)   

[In Africa, People created Parastatal companies. For Americans, these would be "Utilities". These are Government created companies. The modern term for them is SOEs – State Owned Enterprises. These things were CRITICAL in the economic growth of South Africa. Now they are falling apart. That's excellent. The People can't run anything. Let it all collapse. SINK THE SHIP! It's time for People to BREAK FREE. Jan]

Despite investing over R230 billion in state-owned companies, government has only recieved R1 million in return.

Despite investing over R230 billion in state-owned companies, government has only recieved R1 million in return. Despite spending billions of rands on bailouts for state-owned enterprises (SOE), the government has received almost nothing in return.

In parliament’s questions and replies, public enterprises minister Pravin Gordhan was asked to provide information on the bailouts that South Africa’s state-owned companies received versus the dividends they have paid back to the government.

According to the figures released by Gordahn, the government has pumped R233.6 billion in bailouts for its state-owned enterprise over the last five years whilst only receiving a dividend payout of R1 million from one SOE.

This means that the government’s return on equity for the past five years equates to 0.0004% for all SOEs under the Public Enterprises portfolio. Despite subjecting the nation to higher stages of load shedding, Eskom received the lion’s share of government bailouts – R181.6 billion – over the last five years whilst paying out no dividends. headtopics.

Source: https://headtopics.com/za/soes-are-bleeding-south-africa-dry-and-give-nothing-back-39809618

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