COSATU condemns Minister Maropene Ramokgopa’s threat to privatise SOEs

he Congress of South African Trade Unions (COSATU) condemns in the strongest possible terms the Minister for Planning, Monitoring and Evaluation, Ms. Maropene Ramokgopa’s ill-considered and reckless comments and unmandated threat to privatise our State-Owned Enterprises (SOEs).  Minister Ramokgopa has been quoted by the media making such a call after her visit to the Johannesburg Stock Exchange, including her alarming claims that the National State Enterprises Bill currently before Nedlac and Parliament provides a mandate for the state to abandon its leadership role and sole ownership of the SOEs.

Minister Ramokgopa must explain to workers, Parliament and the nation where she received such a mandate from.  The Bill that the Minister claims gives her such a mandate in fact repeatedly affirms that the state shall remain the sole shareholder of the SOEs.  It does not provide any mechanism for the state to dispose of its ownership of the SOEs.  Neither do the various SOEs’ foundation Acts provide for the state to end its sole ownership of them.  Nor has the African National Congress, under whose banner the Minister serves in Parliament and Cabinet, taken any resolution that speaks to privatising any SOEs.

COSATU remains firm, resolute and clear in its belief that the SOEs have and can continue to play a critical, progressive developmental role in the economy.  All our SOEs were once internationally well regarded and provided the backbone for South Africa’s industrial and economic development over the past one hundred years.  Not only were they sources of decent jobs, but they have also helped spur economic growth and support localisation and Black Economic Empowerment. 

Our SOEs were deliberately run into the ground by the state capture project as well as weakened by corruption, criminality, incompetent management, underinvestment and structural economic shifts.  The rebuilding of Eskom has shown that if provided with the strategic support by the state, including debt relief, our SOEs can be stabilised, rebuilt and once again fulfil their constitutionally mandated developmental role. 

Privatisation has been shown across the world and in South Africa not to be a panacea to economic growth beyond the individual bank accounts of those fortunate enough to strip the state of its key assets.  Iskor’s sale led to South Africa being stripped of its steel production capacity.  Sasol has squandered billions in international investment follies.  Telkom has shifted from being the leading telecommunications service provider to a bit player and shed over 40 000 jobs in the process.

Government led by the ANC and President Cyril Ramaphosa must focus on fixing the SOEs and not be deluded or distracted by naive short cuts through privatisation.  The Presidency needs to indicate if the Minister’s stance is that of government or her personal political adventurism.  The Federation will be seeking an urgent meeting with the Presidency and the ANC on this matter.

COSATU and its Affiliates will defend the strategic role of the state in the economy, including its ownership of our SOEs.  We will not agree to any nefarious skulduggery to decapacitate the state and hand over its assets to a wealthy elite. Issued by COSATU

Matthew Parks (Parliamentary Coordinator)

Mobile: 082 785 0687

Email: matthew@cosatu.org.za