Kunjani mfowethu, kade ngingakuboni kutheni mtanenkosi? Kungasenani bengikhuluma lo mfowethu (SGN)and he said he needs your e-mail, he's lost it i suppose.
On the debate above, you bring NEPAD into the picture. Remember NEPAD=OAU=AU(African Union). Same faces different names.It's what one can refer to as the "old but new organisation". Forget about all the rhetoric , the sound and fury , the hotch-potch of confusion , the hanky-panky that characterises these organisations are,to put it in your own language, kungahlekisa uhlanya lucatshile.
To begin with, they recently elected one Robert Mugabe as a deputy (vice?) chairman of the African Union. Meanwhile his legitimacy is a subject of court proceedings in his country.
Various NEPAD groups pronounced as follows on the Zim elections:
"legitimate, free and fair"
These are organisations that are failing their litmus test: Mugabe.
On the issue of privatisation,let me put across to you that COSATU (equivalent to ZCTU)members are smiling all the way to the bank everyday on realising the benefits of privatisation.Recently Telkom(=PTC)was privatised and all ordinary South Africans were invited to buy shares. The shares were priced at about R34 each and ordinary people bought inlarge numbers through their pension money, unit trusts, and personal savings. Currently the same shares are priced at R50 each. Thats a massive profit of R16 a share.Assume one purchased 1000 shares at R34 each and is now selling them at R50 each. Pfrofit R16 000. Ironically, Cosatu thru their investment arms have been the biggest beneficiary of privatisation.
Bafowethu there are many methods of Privatisation
1)Public offering of shares in parastatals
2)Private sale of shares in Parastatals
3)Incorporating new private investment into parastatals
4)Selling of assets by liquidation thereby wiping out outstanding debt
5)Break-up of a parastatal into small companies and selling them separately
6)Management or employee buyout of a company
7)Leasing of a parastatal to the private sector
8)Partial contracting out of state enterprises to the private sector
9)Distribution of vouchers to the public to enable them to buy shares in parastatals
Below are parastatals that have been partially sold by the SA GVT and the amounts received:
SABC radio stations =R510 million
Telkom(30%) =R5.6 billio
Sun AIR =R42 million
Airports Company =R1.03 billion
Connex travel =R15 milliom
SAA =R1.4 billion
Sasria =R7.1 billion
MTN =R2.4 BILLION
Transwerk =R19 million
Safcol =R735 million
Telkom (ucingo division)=R690million
The following entities are being sold currently and final amounts to be realised are as follows:
Eskom =R100 billion
Portnet =R100 BILLION
Petronet =R100 billion
Telkom =R100 billion
Sasria =to be determined
Denel =to be determined
Transnet =R10 billion
ACSA =R 6 Billion
SA airways =R 9 billion
All this money then goes to the poor, in the form of black economic empowerment, housing , education,youth development projects, sports, small business development etc etc. The story does not end here, the new privatised companies now have to pay tax to the government which is in turn distributed to the poor as stated above. NO MORE STATE FUNDING FOR THESE PARASTATALS. They have to compete in the market (like me & you) for scarce resources.
All these figures are available at relevant ministries(Ministry of finance & Ministry of Pubic Enterprises)
Bennefits of Privatisation
1)higher economic growth
2)attracting foreign investment
3)capital markets development
4)opportunity of share ownership
5)wider distribution of wealth
6)higher return on investment
7)access to new markets
8)lower barriers to entry
9)improved fiscal position
12)new and motivated management
14) higher profitability