New Finance Minister Pravin Gordhan has warned that a situation where state-owned entities were “toys for personal gain” would not be allowed.
The minister said he would speak to SAA board chairperson Dudu Myeni later yesterday regarding the situation at the national carrier.
“We are serious that good governance is non-negotiable … we cannot have individuals thinking that state-owned entities are toys for personal profit‚” he said.
Speaking during his first media briefing as finance minister in Pretoria yesterday‚ Gordhan said state owned enterprises (SOEs) were central to the efficiency of the economy.
He said SAA was a vital national asset that needed to be looked after.
“Our humble appeal to the nation is to work with us as we continue to build a resilient economy and a better life for all South Africans in the context of a challenging global‚ emerging markets and domestic economic environment.
“We understand that it is our duty to continuously earn the trust and confidence of the South African public and we commit ourselves to do just that‚” he said.
Gordhan listed the following immediate interventions in the coming months:
l“Stay on course of sound fiscal management‚ our expenditure ceiling is sacrosanct. We can have extra expenditure only if we raise extra revenue. We will unreservedly continue our fiscal consolidation process and we will stabilise our debt in the medium term.
If needs be‚ we will accelerate this by either cutting spending or making selective changes to tax policy. Similarly‚ any revenue raising opportunity will be considered very carefully to ensure that it does not damage growth or affect the poor negatively;
l“We will not cut pro-poor programmes‚ growth inducing programmes and investment. Instead we will see to increase investment in the 2017 budget;
l“We are going to redouble our efforts to ensure efficiency of expenditure across the public service. New measures are being put in place to contribute to reducing corruption and enhancing transparency and these will be completed by stern enforcement;
l“We have been clear that one of the risks to our fiscal framework is the financial state of state-owned companies … any support to these companies will be done in a fiscally sustainable manner;
l“Government is committed to strengthening the link between policy formulation‚ budgeting and performance;
l“Working with the Reserve Bank‚ we are going to intensify and accelerate the pace of financial sector reforms‚ which will be underpinned by Financial Sector Regulation Bill.”
Gordhan added that he had taken account of the concerns of rating agencies and investors and would endeavour to protect the investment grade rating of South Africa.
Gordhan rejects corruption, preaches fiscal prudence
The minister said he would speak to SAA board chairperson Dudu Myeni later yesterday regarding the situation at the national carrier.
“We are serious that good governance is non-negotiable … we cannot have individuals thinking that state-owned entities are toys for personal profit‚” he said.
Speaking during his first media briefing as finance minister in Pretoria yesterday‚ Gordhan said state owned enterprises (SOEs) were central to the efficiency of the economy.
He said SAA was a vital national asset that needed to be looked after.
“Our humble appeal to the nation is to work with us as we continue to build a resilient economy and a better life for all South Africans in the context of a challenging global‚ emerging markets and domestic economic environment.
“We understand that it is our duty to continuously earn the trust and confidence of the South African public and we commit ourselves to do just that‚” he said.
Gordhan listed the following immediate interventions in the coming months:
l“Stay on course of sound fiscal management‚ our expenditure ceiling is sacrosanct. We can have extra expenditure only if we raise extra revenue. We will unreservedly continue our fiscal consolidation process and we will stabilise our debt in the medium term.
If needs be‚ we will accelerate this by either cutting spending or making selective changes to tax policy. Similarly‚ any revenue raising opportunity will be considered very carefully to ensure that it does not damage growth or affect the poor negatively;
l“We will not cut pro-poor programmes‚ growth inducing programmes and investment. Instead we will see to increase investment in the 2017 budget;
l“We are going to redouble our efforts to ensure efficiency of expenditure across the public service. New measures are being put in place to contribute to reducing corruption and enhancing transparency and these will be completed by stern enforcement;
l“We have been clear that one of the risks to our fiscal framework is the financial state of state-owned companies … any support to these companies will be done in a fiscally sustainable manner;
l“Government is committed to strengthening the link between policy formulation‚ budgeting and performance;
l“Working with the Reserve Bank‚ we are going to intensify and accelerate the pace of financial sector reforms‚ which will be underpinned by Financial Sector Regulation Bill.”
Gordhan added that he had taken account of the concerns of rating agencies and investors and would endeavour to protect the investment grade rating of South Africa.
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