The rail freight company has requested more than a hundred billion rand from Treasury.
Finance Minister Enoch Godongwana has reiterated that there are no plans of a bail out for cash-strapped Transnet, for now., Godongwana made it clear that he would not even begin discussing a Transnet bail out unless it accepts government’s new conditions to transform the country’s logistics sector among other things.
“Is there is any details on Transnet bail out? The answer is no. We are still engaging Transnet on what their requirements about a week or so when Transnet approached us with a request for roughly, if I round up, it’s about R50 billion over the next two years. Obviously, we do not want to repeat the template which has happened with others and an example for instance we have helped Eskom for years in funding them about R208 billion to date.
Godongwana adds that state capture and corruption are some of the reasons for Transnet and Eskom’s financial challenges. Godongwana was briefing MPs in Parliament’s Finances and Appropriations Committees. “In any event if you look at both at Eskom and Transnet by the way a complicating factor has been state capture which is corruption. So, we are dealing. We are making those interventions. Mr Manyi has made an assumption which is incorrect that Cyril Ramaphosa goes around raising, there is a team that is dealing with loans. It’s only sitting in the Treasury because it is an asset and liability team and that team borrows approximately R2 billion a day.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Sombre news expected in Godongwana's MTBPS - SABC News - Breaking news, special reports, world,Finance Minister Enoch Godongwana is expected to deliver a gloomy budget.
Read more »
'Godongwana's hands are tied with respect to taxes’ - SABC News - Breaking news, special reports,Economist says it will be interesting to see how Godongwana will strike a balance.
Read more »
LIVE: Minister Godongwana delivers MTBPS 2023 - SABC News - Breaking news, special reports, world, business,Minister Godongwana is delivering the Mid-Term Budget Policy Statement.
Read more »
Government debt expected to exceed R6 trillion: Godongwana - SABC News - Breaking news, special reports,Godongwana says the rise in debt service costs for next year will amount to R385.9 billion.
Read more »
Transnet and Eskom stunting economic growth: Ehrenreich - SABC News - Breaking news, special reports, world,Ehrenreich says Transnet and Eskom are the main reasons why the South African Economy is sluggish.
Read more »
Govt to borrow over R500 bil amid rising budget deficit: Godongwana - SABC NewsMinister Godongwana says government will borrow an average of R553 billion in the mid-term.
Read more »