State Owned Enterprises (SOE) have been at the receiving end following the investors concern on the status of the economy.
And this could get worse if Government, business, civic organizations and trade unions, drag their feet to resolve this unwarranted matter.
Yes, the rand is going to suffer yet again and investor confidence will shrink to such an extent, the credit rating agencies will have a filled day in offices.
On Thursday in Parliament, deputy President Cyril Ramaphosa, called for leaders of state-owned enterprises (SOEs)‚ along with politicians and others‚ to stop making comments that would worsen the current impasse between the Presidency and National Treasury.
It is believed that President Jacob Zuma is preparing to remove Finance Minister Pravin Gordhan using the charges brought by the Hawks a trump card, although Zuma, himself has made a public declaration in supporting Gordhan.
It is also believed Eskom, Transnet and SAA all -SOEs – face poor financial management and this does not augur well for the development and resuscitation of our unstable economy.
Ramaphosa, responding to questions from Parliament members and DA leader Musi Maimane, said that deliberate steps to stabilise the economy were underway. He agreed that the creation of a conducive environment required state entities and the private sector to work efficiently.
“We are a multi-dimensional democracy. The events of the past few weeks have been a concern to many South Africans. We have called for all those who are involved to take care and do not destabilise the economy as that convinces people that South Africa’s economy is not working well‚” said Ramaphosa.
The deputy president went on to call for restraint in premature pronouncement on the standoff. “The processes underway will put this matter to bed. We will be able to move forward with decorum. Government entities looking to join the fray should desist from doing so‚” he said.
The major concern is the poorest of the poor are going to feel the brunt.
