South African Airways
The national carrier has made losses running into billions of rands in the last three years. Last year, it reported a loss of R2.5 billion. It has been the worst performing state corporation in the last two years. In order to ensure the national airline does not close operations, the government has given a go-ahead to Etihad Airways, a global airlines giant to buy minority stake in it.
Eskom Holdings
Eskom is South Africa’s largest electricity generating and distribution company. Over the last two years its financial position has been strained due to upgrades to its aging power plants. The company plans to cut down its staff in a cost cutting initiative. The government started plans to sell and liquidate its assets in order to help offset a loss of R225 million that has hurt the parastatals finances.
Telkom
The state-owned telecommunications company reported profits in its operations in the last two years. However, the profits came at the expense of retiring and retrenching some workers in order to cut down on its operating costs. This has not gone down well with worker’s unions in the country, which are very strong.
Rand Water
In October last year, several parts of the nation were hit by water shortages as the national water company Rand Water tried to resolve a salary and allowances disputes with its employees. The hardest hit parts were Gauteng and Mpumalanga provinces. Similar shortages were experienced in 2014 in Gauteng as the company’s infrastructure struggled to meet increased demand.
Broadband Infraco
It is a state owned company that provides broadband infrastructure. Last year, it needed a bailout of R500 million from the government to help it sustain its operations. The company was left out of the government’s plan to roll out broadband across the entire nation at the cost of R6.5 billion due to this financial woes. The contract was awarded to Telkom. Broadband has made losses since 2010 and only survived to date due to bailouts from government.
South African Broadcasting Corporation
For several years, the national broadcaster has been hit by numerous claims of rampant corruption and administration in-capabilities within its management. Its Chief of Operations Officer, Hlaudi Motsoeneng was appointed to the position despite lacking the minimum qualifications. There has also been exorbitant increase in salaries for its top management team. Since 2012, employees have lodged several cases against the management, with regard to the questionable rise of Motsoeneng from a freelancer journalist to his current position. Last year, the auditor-general reported irregular expenditure by the corporation.
South African Post Office
The state-owned postal services provider reported a loss of R1.4 billion in . This was an increase from the R406.6 million it incurred in 2014. The company has had several strikes by its workers and questions have increased as to whether it is even able to pay their salaries. There have also been question with the way it awards its tenders.
Passenger Rail Agency of South Africa (PRASA)
The company has been hit by years of rampant corruption, lawlessness and unaccountability in its operations. Last year it incurred a loss of R600 million after it purchased 13 passenger trains that did not meet the specifications of the nation’s rail systems. It posted an operating loss of R1.2 billion last year.
PetroSA
It is a state-owned company that deals in exploration and production of oil and natural gas and production of synthetic fuels. Last year, PetroSA reported the loss of R14.5 billion, which is the biggest ever to be incurred by a state company in the nation’s history. Its subsidiaries in Ghana and Equatorial Guinea too reported losses and operations in Equatorial Guinea might be scaled down to cushion it from more losses.
