11 January 2022 - NW2622
Komane, Ms RN to ask the Minister of Public Enterprises
In light of the announcement by the Minister of Finance in his Medium-Term Budget Policy Statement that the State will no longer be bailing out state-owned enterprises (SOEs), (a) which SOEs has he found will be affected the most by this decision and (b) what are the relevant details of his plan for ensuring that the specified companies continue to function?
- Denel will be most affected, if no further funding is made available for SOC.
- However, Denel is not looking for a bailout but to fund a new operating model to deal with high fixed costs and improvements of internal controls to respond better to the shrinking local defence budget and growing competition in its traditional markets. This funding will also come from disposing of non-core assets and entering into strategic partnerships.