JUSTICE MALALA: Sell the SOEs

We need to talk about SA’s state-owned enterprises (SOEs). They should not be state-owned. The reasons are obvious and numerous: They are an unnecessary drain on the fiscus; they play absolutely no role in our economy that cannot be played or filled by a private sector player; they serve as nothing but a piggy bank for our corrupt elites.

Look at their company and audit results. There is no dispute: these "assets" exist merely as a way station while money moves from the state to corrupt individuals.

If you think these failed companies should be state-owned then you believe that a rail agency will never make money. This is not true — many private rail companies across the globe make money without any government aid. Unless it is handed billions in government cash every year.

If you believe SA should own SAA then you believe Virgin Atlantic or Comair cannot make money without billions of rands whooshing into their coffers every year. This is not true. There are many airlines that see an opportunity to make money from routes that are not being serviced and immediately start flying those — and make money from it. Did you know that there are flights wholly run by travel agencies between Cape Town and London? When SAA stopped flying those routes, someone else saw the opportunity and took it.

Do you want to fly from Lagos to Abuja, Nigeria? An entrepreneur will do it. And don’t tell me about national pride. You are proud of SAA? I am not proud of SAA losing billions every year while the people of Hammanskraal are drinking dirty water and being told the government doesn’t have money to fix their supply.

We need to talk about our SOEs because they are impoverishing the people they are supposed to empower. The elite — that means our members of parliament — receive a batch of tickets for themselves and their families every year. They think this means SAA is for the people. The people who are giving their money to SAA through VAT on various items are the poor and the desperate.

In reflecting on what has happened to SAA since the Cheryl Carolus board was hounded out by Malusi Gigaba seven years ago, it should be said by many more of us that Jacob Zuma, Dudu Myeni and Gigaba broke that airline. No-one should be trying to resuscitate it. It’s over. It should be allowed to die. The vacuum it leaves will be filled by many others. If President Cyril Ramaphosa were smart he would be selling the whole thing to Siza Mzimela, the current CEO of SA Express, or someone as entrepreneurial as she is.

Ramaphosa should sell SAA to Siza Mzimela, the CEO of SA Express, or someone as entrepreneurial as she is

Our leaders are not capable of running anything as sophisticated as an airline, a power utility, an arms manufacturer or even a water board. Our water situation, for example, is dire despite the recent rains. Don’t be surprised. Until very recently our water department was in the hands of Nomvula Mokonyane, who notoriously said ANC women will defend Zuma with their buttocks.

The Passenger Rail Agency of SA (Prasa) cannot guard its trains — let alone find the culprits when trains are torched, as happened last week. These are not people who are interested in providing service. They just want their wives and girlfriends to benefit from an inflated contract from this or that SOE. They can’t even make a proper case against the fake PhD engineer who bought the wrong size of train for the operator. The level of incompetence here is astounding.

So when Ramaphosa and his two key ministers, Tito Mboweni and Pravin Gordhan, sit in their many meetings, they should ask themselves: What would be best for the people of SA? We know, for example, that nothing has improved since the day Ramaphosa got stuck on a train in Pretoria. He should know that every day thousands of people find themselves in that situation somewhere in the country. Is it going to get better because the government owns Prasa? Don’t make me laugh.

We are wasting money with these interminable and useless debates.

Sell the SOEs.