- President Cyril Ramaphosa has acknowledged the dire situation facing the nation's state-owned entities
- Ramaphosa admitted that the Medupi and Kusile power stations are a large part of the issues at Eskom
- However, the politician has assured the nation that every avenue is being pursued in finding solutions
President Cyril Ramaphosa has addressed the nation on the issues facing our state-owned entities, Eskom in particular.
Briefly.co.za reported that the politician had visited the Medupi power station recently and on the back of the visit, Ramaphosa commented:
"The problems with the construction of Medupi and its ‘twin’ Kusile account for much of the financial crisis at Eskom. There have been other factors, of course, not least of which are the effects of state capture, corruption, loss and shortage of essential skills and mismanagement."
Despite some (including Finance Minister Tito Mboweni) calling for the battling entities to be shut down, Ramaphosa defended the decision to continue fighting the good fight:
"Although many of these companies are deeply in debt, they remain valuable state assets with immense capacity. We will not allow any of these strategic entities to fail. Rather, we need to take all necessary steps – even drastic ones – to restore them to health."
While Ramaphosa highlighted these issues, he assured Mzansi that the government is doing everything possible to change the prevailing culture of dependency:
"A vital part of the turnaround effort is to reduce the dependence of SOEs on bailouts and guarantees from government. For too long, the South African taxpayer has been funding inefficiency and mismanagement in SOEs. This is coming to an end."
Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!