State Owned Companies : The Forsaken Panorama
When SOCs are inefficient, they drain limited public funds and act as a drag on economic growth and development.
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The operations and performance of South African State Owned Companies (SOCs) continue as a sheer Forsaken Panorama. SOCs play a major and leading role in promoting economic growth and development. The current SOCs environment has its own weaknesses, despite overweighted by their own strengths, SOCs have few incentives to revolutionize. The SOCs going concern notion is being compromised. The use of bailouts to prop up SOCs finances and guarantees to help them borrow have undermined SOCs' incentives to improve their performance. SOCs finances, infrastructure development and service delivery have...
The operations and performance of South African State Owned Companies (SOCs) continue as a sheer Forsaken Panorama. SOCs play a major and leading role in promoting economic growth and development. The current SOCs environment has its own weaknesses, despite overweighted by their own strengths, SOCs have few incentives to revolutionize. The SOCs going concern notion is being compromised. The use of bailouts to prop up SOCs finances and guarantees to help them borrow have undermined SOCs' incentives to improve their performance. SOCs finances, infrastructure development and service delivery have largely failed to improve, as epitomized by the continued deterioration in SOCs's finances, resources mobilization and availability in recent times. The state of affairs discarded the principled inkling starting point for sustainable development in meeting the basic needs of the present without compromising the ability of future generations to meet their needs.
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