Tag: bailout

Zombies are one of the most recognized horror tropes, which has become more popular in the last decade than ever before. However, beyond our screens, zombie companies exist in the business world as well. Despite limping along, it appears that these companies may be reaching their natural end.

Government intervention in the economy simply does not work. It is a mystery, then, why so many otherwise intelligent people keep calling for more of the same. After years of low growth (12 years now) concurrent with government fiscal deficits and various stimulus packages, we are now faced with retrenchments across the economy. The latest of which is Massmart announcing that it is considering retrenching 1,400 people.

The SAA and SA Express boards have failed consistently, but there is a solution, one that will end taxpayer bailouts, satisfy politicians’ desire to keep the flag flying and even retain our national pride. But it will take courage and political will.

South African Airways’ sometimes-controversial CEO, Vuyani Jarana, has resigned. When the news broke on Sunday, many were caught by surprise, perhaps because it follows only a week after the resignation of another state-owned enterprise (SOE) CEO, Eskom’s Phakamani Hadebe.

There is a humorous saying: 'The definition of insanity is doing the same thing over and over and expecting different results. 'It’s often attributed to Albert Einstein, but he isn’t the one who said it. It isn’t the definition of insanity either—but it does describe a trait we could call crazy. Our species tends to repeat past mistakes hoping our 'good intentions' will be enough to change the results—this time.

South African Airways (SAA) is at the point where it must be either privatised or liquidated. The latest bailout only prolongs the pain inflicted on the South African tax payer.