Dear Editor
The DA is deeply concerned that the National Treasury has handed Transnet nearly R100 billion in new government guarantees, with minimal transparency and no democratic input. The South African taxpayer is now standing surety for almost R150 billion in debt for an entity that has little prospect of turning a profit from its operations.
The DA will ask details from the Treasury and then make public the terms and conditions of this guarantee. Should Treasury and the Minister of Transport fail to release these documents, the DA will demand access through the Promotion of Access to Information Act, 2000.
Transnet’s poor performance continues to be a drag on the South African economy and our nation’s exports in particular.
It cannot be properly turned around without the financial resources and skills of the private sector. Transnet keeps promising that they’ll involve the private sector at some point in the future, without doing it now.
We keep giving the debt-drug dependent Transnet just one more hit, hoping this time it will self-correct and come to its senses. All while paying the CEO 8.5 million rand per year.
Far too much was taken from the fiscus and handed to failing state owned enterprises before this new government, where no party controls an outright majority.
Eskom’s access to massive government guarantees allowed it to keep racking up debt without addressing its unsustainable business model and its proclivity to waste public money.
Transnet cannot be allowed to become the new Eskom. Strict conditions and oversight are necessary to ensure Transnet is making the difficult reforms, rather than leaning on a guarantee buffer and continuing business as usual. These conditions must be made public to allow for MPs to exercise their oversight function.
The National Treasury cannot continue to make decisions about such large sums unilaterally. Ghana and Germany both require parliamentary approval for significant government guarantees. The DA will be looking at the viability of subjecting debt guarantee decisions to democracy in the form of a Parliamentary vote.
Regards
Dr Mark Burke MP
DA Spokesperson on Finance