Sat Jul 02 04:06:01 CAT 2016

State firms mooted

By Report by Moipone Malefane | Mar 02, 2012 | COMMENTS [ 26 ]

THE ANC is pushing for the establishment of more state-owned enterprises covering diverse areas such as publishing, banking, medicines, manufacturing and mining.

The state-owned companies will do business directly with the government and most likely compete with the private sector.

In its policy discussion papers the ANC has provided more details about its plans to use Post Bank as state bank and also establish a publishing enterprise and a pharmaceutical company, with the government as a controlling shareholder. A state-owned mining company has been established.

The discussion papers, due for release on Monday, state that the postal infrastructure and Post Bank are needed by government to deliver services to the people.

"As such, ownership of the post office and the Post Bank by government should be linked to efforts to ensure that the two institutions are sustainable."

The party says in its papers that a state bank should not only be defined in terms of ownership, but in terms of the services that are delivered by Post Bank.

"To achieve this the government should introduce policy guidelines to direct opportunities to the Post Bank as a bank of first choice of government and a primary platform for government and citizens' transaction," the paper states.

If implemented, the proposal could see major banks losing the accounts of government entities.

The ANC also wants to establish a state-owned publishing enterprise which will help with production and distribution of books to ensure their availability in all learning places.

The documents raise concerns that methods and practice of acquisition from the private sector plus distribution in government were neither cost-effective nor efficient.

The documents give more details about the plans to establish a pharmaceutical manufacturing plant that will see government producing medicine.

The ANC, however, acknowledges its plans can be sabotaged by a lack of skilled employes in the government.

"Good implementation will require that we build state capacity, establishing high standards of employment in the public service, raise levels of professionalism, discipline and a commitment to serve," the party said.


Login OR Join up TO COMMENT

Talking of nationalisation in a diplomatic and sugar-coated manner..the fact of the matter is that government will retain'nt that nationlaisation.

Mar 02, 2012 10:12 | 0 replies

Seem to rememper R30 billion dissapeared from the Land Bank in one year.

Mar 02, 2012 5:23 | 0 replies

do not criticize nationalised industry, do not forget that GoldmanSachs supported the invasion of Libya because of the BANK, the private interests are the cause of the western failures, with high risk "instruments" , well, a pneumatic jackhammer is not suitable for watchmaking, likewise a sewing kit is not suitable for road-building.

APARTHEID was controlled by private interests(Oppenheim), NATIONALISATION is GOOD for the people, and there is not such a lack of workforce, they are merely caught up in the rat-race, chasing a new car and a new flat. lets not make the Afrikan Dream like the Amerikan Dream, with a BLACK MAN spending a years salary on a DIAMOND EARRING!!!

these western corporate interests have money, they control the supply chain, from source(upstream) to the jewlery shops(downstream),

these foreign interests are subverting the ZA PEOPLE!!

Mar 03, 2012 8:16 | 0 replies


are you referring to the financial fraud witch involved South African Lady Tina Green?
you meanie LandsBankim?

Mar 03, 2012 8:31 | 0 replies

Someone needs to shoot de beers Oppenheimer and push him off BEIT BRIDGE!

Mar 03, 2012 10:40 | 0 replies

@ Belo,DisEnchanted,Blackstone.lebs and Fred55 You're all correct!

@ Tasto, Patra, JD Majona and Papage. Have you not yet learned that your beloved Julian has satisfactorily demonstrated, over the past six years, to South Africans as well as the international community that he sorely lacks the intelligence and skills to hold any public office and that he make no effort to learn from those who would guide him.

He has now worked hard to place himself in the same category as those other motor-mouths - Eugene Terreblanche, Fidel Castro and Adolf Hitler and has succeeded. An empty pot makes the most noise!

Learn that an ability to speechify for hours on end is not indicative of a democratic leader's leadership ability or of his/her understanding of complex issues and any professional analysis of current so-called economic theories of the ANCYL will confirm this. Please wake yourselves up!

Mar 03, 2012 11:28 | 0 replies

Considering the FACT that the ANC is struggling to make other state run enterprises work. How do you think they will do with a few more.
Or is it a case or just creating more ways to steal from the people.
From you OrangeConcentrate coz your one of the people

Mar 03, 2012 3:28 | 0 replies

i don't see anything wrong with the government setting up it's own businesses, as long as it competes with other businesses within the same rules it's not nationalization, it's merely state enterprise, i would prefer if they focus more on new types of businesses though, something that can be exported so we can get money from outside coming in, like the manufacturing of solar panels for example, or something cuttiing edge like that. Or even food production, 7 billion people on the planat and growing strongly food is gonna become an issue in our lifetime, especially if the oil runs out...

Mar 03, 2012 4:36 | 0 replies

Very optimistic people!. Talk of bloated egos!. The govt is not capable of managing the government departments how in h.ell will they manage industries that require skills?.

Mar 04, 2012 2:40 | 0 replies can they try more state owed enterpriseswhilst the ones they have already are a complete mess..and as for the Post Bank..I should think anyone sensible will be bit weary to start investing in a bank who just got robbed over 40million through laxed IT security..where is the risk assessment here.

Mar 05, 2012 8:7 | 0 replies

Forgive me if I am wrong but Alexcor (state mining co) is losing money. Post office just had 24 million stolen from it because IT security systems were not secure, Escom is a disaster and so is transnet.

Now the ANC wants to open more state owned companies when they can't organise a p1ss up in a brewery!
The sad part is that they don't have any shame, they just want to steal from the people and bankrupt more entities. More people who is going to sit without salaries and more people on state handouts for which the middle class and poor have to pay.

Unfortunately there is to many blind sheep who sees this as a positive, they have no business sense and does not understand where their salaries are coming from, they think it is magically transferred every month and the company they are working for do not need to show profits to be able to do this.

Mar 05, 2012 10:12 | 0 replies