The decision by Futuregrowth Asset Management to withhold additional funding to a number of state-owned enterprises (SOEs), including Eskom and Transnet, is a clear vote of no confidence in President Zuma, coming just weeks after the absurd Cabinet decision to place the President in charge of overseeing all SOEs.
In justifying their decision, Futuregrowth cited “recent reports that strongly hint of conflict between branches of South Africa’s government, the possible machinations of patronage networks and a seeming challenge to the National Treasury’s independence.”
This is a clear swipe at Zuma and his project of state capture, with Futuregrowth indicating that they would only reconsider funding the SOEs once “proper oversight and governance” have been restored at the companies.
South Africa’s SOEs are in a dire state costing the country billions as government continues to prop them up despite their immense losses. At the root of their mismanagement is largescale corruption that feeds an ANC patronage network headed up by Zuma.
Restoring confidence requires that Zuma desists from his attempt to centralize control over SOEs in himself, and affirms the independence of the Treasury.
Decisions relating to SOEs must be made in the best interest of the economy and the well being of the people of South Africa, something the President is incapable of doing.
Tags: state capture