Business rescues hide ANC’s confusion about the private sector’s role
The government struggles to accept the concept of shutting down failed businesses. Business rescue is then chosen as a last resort when a stakeholder calls for the company to be liquidated. Politicians then label the entity as “strategic” and too damaging to shut down or liquidate, even though the shareholder is not in a position to recapitalise it. But are institutions like the SA Post Office and SABC candidates for rescue? Even rescued SEOs are likely to struggle in future as there’s no long-term vision for the assets or the industry in which they operate.