The government may not be allowed to dwindle the public service’s pension funds with further purchases of ailing state entities’ shares to throw bailouts for sinking entities,” said Adv. Anton Alberts, chairman of the FF Plus.
He responded to the treasury’s plan to release R10bn of its 39% stake in Telkom to save the hopeless SAA from destruction.
“We suspect that the easiest way to do this will be to use the Public Investment Corporation (PIC) to purchase the shares. The FF Plus will oppose any such attempt. The shares of ailing entities will not add value to the PIC and will only lead to a negative long-term weakening of the funds.”
“That’s what happened in 2015 when the government sold its 14% stake in Vodacom to the PIC to recapitalize Eskom.”
“What will the government sell next to save SAA as it did so many times before? If there are no drastic changes to the airline company, to see how it can be profitable within the foreseeable future or it will have to be rescued again.”
“The SAA is currently nothing but a bottomless pit that sucks treasury dry,” said Adv. Alberts.
Read the original article in Afrikaans on Die Vryburger
South Africa Today – South Africa News
