Multi-Party Charters says govt is wasting funds on SOEs

JOHANNESBURG - The Multi-Party Charter (MPC) believes the government is wasting funds on maintaining and bailing out struggling state-owned entities (SOEs).

The alliance comprising 11 parties including the Democratic Alliance (DA), Action SA and Inkatha Freedom Party (IFP) says privatising SOEs could bring much needed relief to the country’s coffers.

At a media briefing held in Benoni on Wednesday, party leaders in the MPC unveiled plans to improve social relief and increase grants.

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The privatisation of SOEs has been a hot topic for many years – as some believe it’s the only way to rescue them from a total collapse.

DA leader John Steenhuisen says the declining state of SOEs is proof South Africa can’t maintain them.

"There’s no need for us to be running state-owned diamond mines, state-owned airlines, state-owned this state-owned that and they can end up costing South Africa much more."

Steenhuisen says money directed to bail out SOEs could be repurposed to improve social relief.