R521 billion of South African taxpayer money used to bail out corrupt and mismanaged state-owned enterprises

The South African government gave half a trillion rand in taxpayer money to corrupt, mismanaged state-owned entities as bailouts.

This information was shared by Darren Bergman, the DA’s spokesperson on Planning, Monitoring, and Evaluation, during a speech in Parliament.

Bergman said that President Cyril Ramaphosa’s legacy will be determined in part by the future of South Africa’s state-owned enterprises.

He cited the large amounts of money which were given to state-owned enterprises as bailouts, without getting much in return.

• South African Airways has received close to R50 billion in bailouts.
• Eskom received R496 billion in government support since 2008.
• Denel received nearly R9 billion in bailouts.
• The Post Office received R10 billion from the government.
• SANRAL received R47 billion from the state.
• Transnet, which requested a R61 billion bailout, was declined but given a guarantee facility and billions more in structured support.  

“In total, South African taxpayers have forked over R521 billion propping up these entities,” said Bergman.

“We must be honest about whether we will spend another half a trillion on floating state-owned entities or choose to relieve taxpayers.”

He highlighted that despite these large bailouts, most state-owned enterprises continue to struggle and deliver poor services.

“SAA has reported a net profit of R155 million for its 2024/25 financial year. However, aviation analysts have raised serious questions about the figures,” he said.

“A R30 million operating profit in an airline that received fifty billion rand from taxpayers is not a reason for a standing ovation. It is a reason for vigilant oversight.”

He added that while Eskom’s finances have stabilised marginally, it is expected to warn of potential renewed reliance on the National Treasury by 2028.

Dawie Roodt said the ANC broke South Africa’s economy

Efficient Group chief economist Dawie Roodt previously explained that the ANC broke the economy through outdated ideologies and mismanagement.

He said that the state cannot run companies, which is seen in the collapse of companies like Eskom, Transnet, SAA, and the SA Post Office.

Roodt said the ANC also does not understand what makes a modern economy work and which policies are necessary to expand it.

The economy has become increasingly high-skilled and services-based, which requires a different way of thinking about how value is created.

Another major issue with the ANC is the party’s belief in cadre deployment, which Roodt explained has led to increased incompetence within the state.

This is because people are employed in the state and public companies based on their loyalty to the party and not on basic competence.

An overarching characteristic of ANC rule has been corruption, with widespread looting of state resources resulting in significant capital and value destruction.

The lack of skills and capacity at all levels of government has resulted in the collapse of state institutions and municipalities.

A similar situation has played out at South Africa’s state-owned enterprises, with mismanagement resulting in deteriorating service provision and financial collapse.

These public companies, such as Eskom and Transnet, are no longer in a position to invest heavily in local infrastructure and service delivery.

“The reality is that the ANC destroyed the state-owned enterprises and local authorities,” Roodt said.

In the past, public companies and municipalities were able to be self-sufficient and survive without bailouts from the National Treasury. This is no longer the case.