Annual Reports reveal more failing SOEs

Issued by Dianne Kohler Barnard MP – DA Shadow Minister of Communications
05 Oct 2022 in News

Please find attached soundbite by Dianne Kohler Barnard MP.

The failings of State Owned Entities (SOEs) have become endemic to South Africa.

This was emphasised by two annual reports from the Department of Communications and Digital Technologies. These annual reports are for two imploding entities: the South African Post Office (SAPO) and the South African Broadcasting Corporation (SABC), and reveal how mismanagement and corruption are costing South Africans an absolute fortune.

It is truly shocking to see the staggering amount of money that the public has paid over the years for SOEs which continue to fail year after year.

The Post Office Annual report reveals that the SAPO reported a net loss of R2.2 billion. This despite receiving massive bailouts from government. What is more worrying is that only 68.36% of mail got delivered. In the space of one year, 146 branches closed across SA, leaving millions of our grant beneficiaries with nowhere to go.

Meanwhile, messages are flooding in from desperate current and retired employees whose Medical Aid has been stopped, while accompanied by threats of thousands of rands of money they have already paid, being taken from their pensions.

The SABC, another sinking ship’s annual report reveals that the corporation incurred R2.8 billion in irregular, fruitless and wasteful expenditure, with a net loss of R201 million. It also reveals a number of lawsuits against them.

Another revelation in the report is that financial statements weren’t prepared as required by the framework of the Public Finance Management Act (PFMA). The Minister and the board have shown no evidence that steps have been taken against officials who were implicated in massive irregular expenditure. Yet the board claims they maintain strong governance and operational excellence at all levels of the Corporation with zero tolerance for corruption and maladministration.

These are only two of the eight annual reports that have been released by Minister Ntshavheni’s Department. Soon the Post Office and SABC will be holding out begging bowls for further massive taxpayer-funded bailouts.

The DA will call for an urgent committee meeting following the R5 billion in irregular expenditure at the Post office and SABC alone.