Even considering centralising the ownership of state-owned enterprises (SOEs), as reported by Thando Maeko, shows that the government truly has no idea how to fix the mess it has caused (“Cabinet to weigh centralised ownership of SOEs” September 6). Or, it simply doesn’t care.
The root of the problems plaguing Eskom, the SABC, Transnet, Denel, the Post Office and SAA (the list goes on) can all be found in the actions of central planners who use these institutions as tools to exploit, loot and control.
While private enterprise is inherently incentivised to do well, SOEs can always rely on receiving subsidies and government-backed loans. There’s no accountability. And in the case where there are state-mandated monopolies (electricity), there is no competition or alternatives.
In what world is putting incompetently run state enterprises under a single state-run entity going to solve matters? All it will accomplish is centralising incompetence, corruption and failure.
At least there is a possibility of decent leadership under decentralised parastatals. Under a single central planner there will be no possibility of even an accidentally good manager.
We should be decentralising our parastatals even more. We should be privatising Eskom, the Post Office, SABC, SAA and most other SOEs.
There needs to be less central planning and less state-intervention across the board. Not more. Centralisation is the poison that will further destroy the economy. Not the cure. We should be fighting this move tooth and nail.
Nicholas Woode-Smith
Cape Town
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