Undermining national assets: the DA’s scheme to devalue and sell South Africa’s SOEs

In recent developments, the Democratic Alliance’s (DA) strategies and actions have sparked significant controversy and concern regarding the future of South Africa’s state-owned enterprises (SOEs). A detailed examination of their efforts, particularly in relation to South African Airways (SAA) and Transnet, reveals a disturbing pattern aimed at devaluing these national assets for the benefit of US patrons.

The SAA deal collapse: Gordhan’s battle and warnings

Public Enterprises Minister Pravin Gordhan announced last month the termination of a deal to sell a 51% stake in SAA to the Takatso consortium, attributing the cancellation to post-COVID-19 market influences, which necessitated a revaluation of SAA’s assets. This revaluation highlighted significant discrepancies, leading to the deal’s collapse. Gordhan’s stance against using public funds for a legal battle against a parliament portfolio committee’s scrutiny of this failure underscores a larger issue: the manipulation of national assets’ values and the implications for South Africa’s sovereignty and economic stability.

The confidential letter: Gordhan’s critique and defence

A confidential letter from Gordhan lambasted the committee’s draft report on the failed SAA deal as irrational and biased. The letter reveals Gordhan’s fierce defence of the valuation process and his accusations against the committee of bias and predetermined outcomes. This confrontation reflects a deeper struggle over control and transparency in managing South Africa’s SOEs (Sunday World).

The DA’s role in privatizing Transnet

In a shocking revelation, the DA has been implicated in attempts to privatize and transfer control of Transnet to US investment firm BlackRock. This move, part of a broader agenda to privatize South Africa’s public sector, poses serious threats to national sovereignty, job security, and economic stability. The DA’s willingness to side-line significant investments in infrastructure modernization for American interests reveals a disturbing prioritization of foreign investments over national well-being (Savanna News).

Blackrock’s involvement: A corporate takeover

The potential transfer of Transnet to BlackRock, known for its global acquisitions and profit-driven management, represents a grave threat to South Africa’s economic sovereignty. The implications of such a transfer could lead to job losses, undermine local expertise, and jeopardize national interests in favor of external, profit-driven agendas. This scenario exemplifies the dangers of privatizing crucial national infrastructure and the need for vigilant protection of South Africa’s assets (Savanna News).

A call to action against the DA’s schemes

The Democratic Alliance’s actions, aimed at devaluing and selling off South Africa’s SOEs, represent a clear and present danger to the country’s future. By prioritizing the interests of US patrons over national well-being, the DA threatens the very foundation of South Africa’s economic sovereignty and stability. It is imperative for South Africans to recognize and challenge these schemes, ensuring that national assets remain under local control and serve the interests of the nation, not foreign investors. The revelations about the SAA and Transnet cases serve as a stark warning of the consequences of unchecked privatization and foreign influence in South Africa’s public sector.