State Owned Entities (SOEs) are hurting us more by keeping them just to spite White Monopoly Capital (WMC). WMC losses nothing whilst we (the government and the people at large) lose billions and billions in bail-outs every two years or so.
In theory, nationalisation is a great pro-poor concept that should assist a country solve its socio- economic challenges, however as a country, that has not been the case but rather unfortunately the complete opposite. For decades now the state has been pumping money into these bottomless pits in the form of bail-out after bail-out. Money that could – should – have been diverted to much needed programs that seek to solve our socio-economic challenges.
Truth is, we do not have the political will nor capacity to turn these SOEs around, we have seen numerous turn-around strategies without any result. Twenty years from today we will still be bailing out these entities.
The ONLY reason our government keeps holding on to these useless entities that are milking tax payers dry is to perpetually keep using SOEs as their own cash cows while dispensing patronage. We keep being blackmailed into keeping these SOEs by using ‘WMC’ as a scarecrow which in actual fact is NOT stealing from the state. These entities should be sold to the highest bidder, if that is WMC so be it, at least then our taxes will not be used to bail them out.
By Zolile Gosa
Image created by élan Concepts