News24

Nationalisation - Alexcor failure bad omen

2011-03-10 17:59

Cape Town - Alexcor's precarious situation shows that nationalising the mines will be a serious mistake, the Freedom Front Plus said on Thursday.

"The state's diamond mining company is effectively bankrupt. If ever one wanted proof what is to happen to our country's mines should they be nationalised, one has to look no further than the Alexcor fiasco," FF Plus spokesperson Anton Alberts said in a statement.

According to the auditor general's general report on national audit outcomes for 2009/2010, the company did not have enough financial reserves to meet its operational cash-flow requirements.

The AG also had serious concerns about the company's ability to continue functioning in future if it did not reach an agreement with the local community and start sustainable mining activities.

"These findings should be read against the backdrop of certain elements in the ANC government, especially under the 'huge intellectual leadership' of [ANC youth leader] Julius Malema, who is prescribing to South Africans that the nationalisation of mines is in the interest of everyone," Alberts said.

Future bleak

Only last weekend Malema again called for the nationalisation of at least 60% of the ownership of all mines, with specific reference to Anglo American.

"In contrast to this road to a socialist utopia, the reality is that the state cannot even profitably manage its oldest mining company."

The forecast for the state's second mining company, the African Exploration Mining and Financing Corporation (AEMFC), for a profitable future looked as bleak, given Alexcor's retrogression.

The state could not even fulfil its core obligation of rendering public services, so it was much more likely that the state would fail to manage a business on the periphery of the state's focus, he said.

Wrong

Nationalisation and state management of businesses "is wrong".

The state should create only the environment for business to flourish.

"That is why the emphasis should move away from a huge state machinery which interferes everywhere, whether in the private sector or in private lives, and focus on the development of entrepreneurs and the creation of an environment in which they could innovate and trade on a level playing field.

"That is the prerequisite for the establishment of a sustainable environment in which permanent job opportunities are created."

The FF Plus had asked parliamentary questions to determine who was funding the state's mining company.

"If taxpayers' money is being used, it is a shame and the party will consider further steps to stop the continued wasting of public funds," Alberts said.

Comments
  • Ross - 2011-03-10 18:05

    The bankrupt Zimbabwean government owned Zisco steelworks has been taken over by India's Essar group for US$ 750 million,another government failure. Don't tell this to Junior he won't comprehend.

      JoggieRSA@24.com - 2011-03-10 18:32

      Now let me repeat.... Mark my words... 2012 Election results will be followed with the announcement that ALL profitable mines in South Africa, will be nationalised. 60% belongs to the ANC. This is South Africa. The piggy-bank of the ANC top elite. South Africa stand doomed if the REAL SOUTH AFRICANS do NOT stand up against the ANC. Be PART of the solution. Not part of the problem! Vote against the ANC! We want our own South Africa back... At this stage it belongs to them.

      Roche - 2011-03-10 18:32

      The jelly totsie does not care if nationalisation of mines will benifit the people or not, he just wants to get his grubby mits on the money

      Madelane - 2011-03-10 18:45

      It's okay Ross, Junior cannot read and the ones who will try to explain this to him won't comprehend what was said anyway other than to become quite upset that the pinks are saying colonial agent things about him again.

      Jayjay001 - 2011-03-13 02:09

      FF are looking for sensationalism and they seem to have gotten it on this one. Racist Malema said that he wanted 60% of Anglo American, as in Botswana who Anglo give 51% to the Botswana government. I can only see the benefits of enriching the lives of millions of South Africans. If we had the money to educate, feed and house our fellow impoverished South Africans then just maybe a huge perhaps that we would not have crime and all the other issues that go along with having poor people. It truly shows how selfish you people are, you just hate poor people getting any help. Stop talking rubbish and fooling yourself into believing garbage. Study economics and travel the world before coming and writing absolute hog wash, sick of all these narrow minded racists who are the never ending loud noise of pointlessness. I'm pale skinned myself, and dislike the ANC for one reason and one reason alone - their movement towards racism (but i truly wonder that after reading baseless comments like yourselves that you aren't pushing them to it). We're dealing with a helluva lot of crap in terms of oppression against ALL minorities by the ANC through racist policies CLEARLY against the Constitution which clearly states equality for all, Black and White in SA. Let's get our facts straight and not just hate the ANC for POINTLESS reasons. If we actually stood together and fought their true injustices we would be in a much better foot than where it stands now

      int1m1d4t0r - 2011-06-22 10:40

      @ Jayjay In Botswana ... the mines are still owned by Anglo,..they pay the goverment 50% tax, the government does not own any of the mines... it works... Botswana is a great place... Botswana also ploughs 25% of their budget into education. Botswana blacks are way more educated and nicer than South African blacks, they also do not feel sorry for themselves. South Africa could learn a lot from Botswana.

      tryanything - 2011-08-04 08:38

      Good luck to Essar. What are they going to do with it?.

  • POLLENYS - 2011-03-10 18:09

    Everything the state touches turns to sh*t. But it won't stop them.

      Spyker May - 2011-03-10 20:05

      Pity they don't flush straight after shaking hands...

  • Jorg Steinhage - 2011-03-10 18:25

    Eish. Government steps into a profession that looks glamorous...only to discover the not so glamorous hard work and then drive it and all it's loyal employees into the ground. Double eish!

  • Jorg Steinhage - 2011-03-10 18:29

    Eish. Government steps into a profession that looks glamorous...only to discover the not so glamorous hard work and then drive it and all it's loyal employees into the ground. Double eish!

      Vaal Donkie - 2011-03-10 18:45

      Double post. Double Eish ;)

  • John - 2011-03-10 18:43

    this is a total farce !!! when it was in private hands it was very profitable i should know i am in the diamond business and i knew the previous owners well !!! viva africa eish

  • CAROLAM - 2011-03-10 18:50

    It is really incredible the way the ANC government fouls up everything. Offshore countries just did not get it when they supported sanctions from 1960 till 1990. Now they wash their hands and look the other way too burdened with their own problems. This was predicted and so it came to pass.

  • Mundu - 2011-03-10 18:51

    South africa is on the road to nowhere.

      Tshane - 2011-03-10 19:08

      More like the road to the sh#t house

      CKS - 2011-03-10 19:23

      Unfortunately we are not on the road we are lost.

      tryanything - 2011-08-04 08:40

      Lost inside a pothole.

  • jan du preeaz - 2011-03-10 19:18

    aag please man, the men with REAL power in the ANC will never let this happen, they will loose billions. ju ju and floyt are just on a power trip but mark my words, these little ones will be sized by okes such as Motsepe etc. What I really want to know is how much is the chinese promising these little twits in the background...

      Dave - 2011-03-10 20:46

      You live in a dream world, its already happened with the announcement of the state mining company, they have already taken so many mining licenses, without proof of any exissting law...in a few years time, what mining company will be left to mine any new mines?

      Ghost - 2011-03-11 11:44

      @ Jan. How long have you been in a coma?

  • foulshamnairn - 2011-03-10 19:20

    ZCCM in Zambia went the same way and eventually finished up run by the Chinese and Indians and they both spend as little as possible to make as much profit as they can. Watch SA go the same way.

      int1m1d4t0r - 2011-06-22 10:44

      Difference is... The South African miner will murder any Chinese Miners.. and strike when they do not get what they want.. the Chinese will be out of here in no time and so will the miners out of jobs... Dark days are coming... but when it all falls apart, the minerals will still be in the earth, hopefully they will not mess it up too badly so that it is not too expensive to actually start mining again. The black south african is in for a shock... thought the whites were bad.. enter the chinese. haha...

  • CKS - 2011-03-10 19:21

    The Anc and their cadres can not even run State and Municipal accounts. How do any one in his right mind expect them to run a SME. The taxpayers in this country invest a lot in this country. The Anc Creates a record budget and the whole world thinks the ANC is the best thing siiced bread. Although all this money gets pumps in nothing works, from the ANC ministers, mayors Head of Departments or the Ancyl since 1994. What is new in the new South Africa Democracy?? Actually nothing works because there is no problem.

  • Stroller - 2011-03-10 19:55

    Grey skies and cold wet winters have just become more appealing.

  • Dave - 2011-03-10 19:58

    Go reead up on Alexkor....fascinitating...Employment possibilities?....No, jobs down from 691 to 105 emmployees, and this is the flagship of the state ming company

      Pat Bromilow-Downing - 2011-03-11 09:35

      If you want to see how bad things are now in that region take a trip to Alexander Bay. It is becoming (has become) a ghost town. Where once there was a dairy farm (1200 head of cattle), citrus farm (Brandkaros), ostrich farm (used to make leather goods now thy just use them for meat) etc now there is nothing. All the money handed over by government (our taxes) is all gone.

  • Zenwie - 2011-03-10 20:07

    Give Julius a change to come out and show all how it must be done. Make him CEO of Alexcor to come and do a turnaround job, and make his salary 5% of the profit.

      Felix - 2011-03-11 07:59

      JuJu working? you've got to be kidding me!

      BraStevovo - 2011-03-11 08:15

      I am still waiting for the kindergarten to educate us on how they are going to do it.

  • Chris - 2011-03-10 21:04

    Good Idea! Maybe we can then affort competent people to run this country?

  • Welleducated - 2011-03-11 08:54

    It is true, the ANC politicians CAN do a better of taking money for themselves form nationalisation - true. They can do a better job by nationlising mines - false. Taxes already take a huge chunk and the investors take the risk nit the tax payer! Some ANC people are just very stupid.

  • vandermerwe.martin - 2011-03-11 11:31

    Maybe someone should draw picture for the dumbest bass ted on the planet Malema, explain to him slowly that it will not work.

  • synergy - 2011-03-11 23:45

    Julius is dumber than a chicken, and you cant really beat that. A chicken is doff. He is sick in his head. Mugabe must have passed the Syphilis on to him.

  • Spinner - 2011-06-08 20:21

    Was like a dog chasing cars, the moment he caught one he had no clue what to do with it.

  • Robert Mann - 2011-06-15 08:33

    I think we need to give the ANCYL a mine to run and then let the workers vote on Nationalisation!

  • BigAl - 2011-08-04 16:10

    Will the last one out please turn the lights out - Thank you.

  • BigAl - 2011-08-04 16:14

    Malema tried to blow up a whites car the other day – burnt his lips on the exhaust pipe.

  • BigAl - 2011-08-04 16:18

    Malema should be MD of all mines, so like all bosses best to start from the bottom. He can start tomorrow on the 06:00 shift, please pass him a shovel and helmet.

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