The DA says it is ‘deeply concerned’ that National Treasury has handed Transnet almost R100 billion in new government guarantees with “minimal transparency and no democratic input”.
“The South African taxpayer is now standing surety for almost R150bn in debt for an entity that has little prospect of turning a profit from its operations,” said Mark Burke, DA spokesperson on finance.
Burke said his party planned to ask National Treasury for details about the conditions of the guarantee, which it would then share with the public.
“Should Treasury and the minister of transport fail to release these documents, the DA will demand access through the Promotion of Access to Information Act, 2000,” Burke said.
“Transnet’s poor performance continues to be a drag on the South African economy and our nation’s exports in particular. It cannot be properly turned around without the financial resources and skills of the private sector.
“We keep giving the debt drug-dependent Transnet just one more hit, hoping this time it will self-correct and come to its senses. All while paying the CEO R8.5m per year. Far too much was taken from the fiscus and handed to failing state-owned enterprises before this new government,” Burke said.
He added that Eskom’s access to massive government guarantees allowed it to keep racking up debt without addressing its unsustainable business model and its proclivity to waste public money.
“Transnet cannot be allowed to become the new Eskom. Strict conditions and oversight are necessary to ensure Transnet is making the difficult reforms, rather than leaning on a guarantee buffer and continuing business as usual. These conditions must be made public to allow for MPs to exercise their oversight function,” he said.
Burke said National Treasury “cannot continue to make decisions about such large sums unilaterally”.
“Ghana and Germany both require parliamentary approval for significant government guarantees. The DA will be looking at the viability of subjecting debt guarantee decisions to democracy in the form of a Parliamentary vote,” he said.
