ISSUED BY CEDRIC FROLICK, MP
UDM SPOKESPERSON FOR PUBLIC ENTERPRISES
announcement by Minister Radebe is an anti-climax since it merely reflects good
intention and no implementation plan.
A number of issues
remain of great concern to the UDM:
1. Although the Policy Framework identifies Black Economic
Empowerment (BEE) in the restructuring process, the UDM is pessimistic about
Government's chances of success, given its dismal track record. The ANC tends to
confuse BEE with rewarding comrades from its own ranks and redeploying
incompetent cronies to head State Owned Enterprises (SOE's). In the process the
ANC creates its own "elite class" at the expense of the unemployed,
The Policy Framework acknowledges the fact that in the short-term job losses
will take place due to the restructuring process, however the extent of the job
losses remains a closely guarded secret. Little detail have been supplied with
regards to the retraining of employees who will face possible retrenchment.
3. According the MTEF potential proceeds will be forthcoming from
the restructuring of SOE's. How does Government's Policy Framework on
Restructuring deviate from the budget, and why? Will the expected proceeds from
restructuring for the current year exceeds the budget, and by how much?
Do the expected proceeds from restructuring reflect the real value of the assets
4. There is no clearly defined action plan for restructuring or
privatisation, i.e. action steps coupled to dates and responsibilities. The only
conclusion is that there is little or no urgency in this regard.
5. Questions remain about competition issues within the affected
sectors, which will discourage possible investors and deter quality service.
6. This represents another missed opportunity to:
· Attract foreign investment
· Kick-start the economy
· Reduce government debt
· Reduce funding from other sources
· Boost investment
· Enhance local ownership
· Benefit all South Africans by improving services
Due to the failure of Government to announce a "privatisation" program
that can be implemented over the next five years, we can only assume that the
Tripartite Alliance have not yet reached agreement on the direction "privatisation"
should take, how much can be expected to be generated in receipts and how such
receipts can be utilised to the benefit of all South Africans.
It is to be expected that that the markets will react negatively on Government's
Policy Framework on Restructuring.
Cedric Frolick, MP
UDM Spokesperson for Public Enterprises
10 August 2000