Oe Bailouts News Today

National Treasury recently announced a R47 billion support package for Transnet as it faces a raft of financial and operational challenges.

The rail, port and pipeline company was given a lifeline on Friday when Treasury conceded to a request by the Department of Public Enterprises.

Transnet was singled out in his Medium-Term Budget Policy Statement (MTBPS) as one of the major contributors to the sluggish economy that’s led to an under-recovery of revenue to fund the country’s budget.

Professor Mark Swilling was responding to the measures put in place to strengthen SOEs announced by Finance Minister Enoch Godongwana during his budget speech on Wednesday.

Chief economist at Econometrix, Azar Jammine, warned that if government reduced the bailouts, citizens may have to bear the cost.