With the ANC in charge of government for the coming five years one can see the economy of the country going into a shut down.
When the ANC took over the country, our State Owned Enterprises (SOEs) (SABC, DENEL, ESKOM, SAA, ESKOM, TRANSNET and TELKOM) were highly successful, profitable and in a healthy state, but 23 years later, the picture has drastically changed for the worst.
With Eskom debt sitting at R600 billion and the recent announcement of load shedding going into the future, this can only paint a bleak economic situation. Load shedding could damage potential foreign investment, especially if rating agencies like Moody’s downgrade SA into a junk status.
There is no way that Eskom can climb out of its debts, as ANC-led municipalities owe the state utility billions in unpaid services.
The SAA is another SOE which has literally run out of money and will need a bail-out of R5 billion, just after the R10 billion it received in December 2017.
SANRAL is already in need of a R2 billion fix, which will need another deep dig into our already depleted fiscus.
SABC is another SOE on its knees. Already unable to pay its bills it owes R100 million to suppliers, and R90 million needs to go to independent producers, with a whopping 64 companies owed by the national broadcaster.
People have literally stopped paying TV licences and the project of migration from analogue to digital television, by using a decoder system, has failed. In a move which was expected to generate revenue for SABC, R10 billion was wasted on set-top boxes, which are lying disused in warehouses across the country.
The Auditor General Kimi Makwetu hasn’t painted a brighter picture either, as he has announced a R79 billion increase in government’s irregular spending and wasteful expenditure.
South Africa is currently the most indebted country in Africa, with debts amounting to more than $792 billion, excluding billions concealed in Chinese loans, as well as a R195 billion fiscal deficit (meaning government is spending more than it can generate in revenue).
With our SOEs all in the red, there seems to be no way out of this quagmire unless this corrupt party that has ruined and destroyed this country is done away with. Failing this, there will be no end to the corruption and looting that has brought this country to its knees.
This is the time to fix this country and the responsibility of doing so rests with all of us…by voting wisely.
By Lawrence Lolo Letsoalo
Photo by Element5 Digital