Parastatals unprofitable: survey

2012-01-17 11:02

Five out of nine state-owned enterprises recorded profits in the 2009/10 financial year, the SA Institute of Race Relations has revealed.

“Of the nine state-owned enterprises reporting to the department of public enterprises, only five produced a profit in 2009/10,” the institute said.

This did not take into account parastatals that were not accountable to the department of public enterprises, which is the shareholder representative of government for the nine state-owned enterprises.

Transnet was the most profitable parastatal, while Eskom recorded the biggest loss in 2009/10, according to the latest South Africa Survey, to be published by the institute next week.

“The most lucrative parastatal was Transnet, which showed a profit of R3 billion,” the institute said.

The Pebble Bed Modular Reactor, SA Airways, SA Express, and the SA Forestry Company all made a profit in 2009/10.
The combined profit of these five parastatals was R4 billion.

“The least profitable parastatal for the 2009/10 financial year was Eskom, which posted a loss of over R9.7 billion, although it has since turned around its fortunes and posted a profit of R13 billion for 2010/11.”

Alexcor, Broadband Infraco, and Denel posted losses for 2009/10 totalling R310 million.

The total loss of all four entities was R10 billion.

“This equated to a net loss of R6 billion for all state-owned enterprises,” the institute said.

The total assets of all state-owned enterprises in 2009/10 amounted to more than R450 billion.

“The biggest concern with these results is that the government will have to support loss-making entities at taxpayers’ expense,” said Jonathan Snyman, a researcher at the institute.

The institute’s analysis was based on the yearly reports of the nine state-owned enterprises.

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