Yesterday Auditor General Kimi Makwetu announced that departments racked up R46 billion in irregular expenditure in the last financial year. A large amount of this money is being misspent by State Owned Enterprises.
Essentially what we are looking at is a situation where individuals in these enterprises get into deals in a such a way as to arrange for these enterprises to pay out more money than needs be paid out in ordinary market, and the additional benefit to those connected individuals.— Dr Azar Jammine, chief economist at Econometrix
Jammine says transformation attempts are being misused by certain people in State Owned Enterprises.
Listen to the audio below to listen to the full interview...
Meanwhile, the National Union of Metalworkers of South Africa (Numsa) says there should be a public participation in selection of people to serve in parastatals board committee.
Numsa acting spokesperson, Patrick Craven, says South Africa should work towards a system where parastatals are led by people democratically elected.
And give a clear mandate that these boards should be run for the benefit of people as a whole, not like they are run at the moment.— Patrick Craven, Numsa acting spokesperson
Listen to the audio below to hear why Numsa wants changes in parastatals...
This article first appeared on 702 : SOEs irregular expenditure related to state capture - economist