Treasury concerned struggling SOEs will impact tax revenue
National Treasury says it is concerned about the impact
struggling state-owned entities will have on its ability to generate tax
revenue.
It was briefing the National Council of Provinces in Parliament on Friday.
Director General Duncan Pieterse says SOEs remain distressed due to weak governance and poor operational systems.
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"In Eskom, they are making progress on their recovery plan. On the finances side, there’s room for improvement. In this budget, two additional allocations are being made to Transnet for their Ukuvuselela Auto Corridor.
"But in general, we do have some concerns around the potential impact of state-owned companies and their weakness on the fiscal framework. Not only in terms of financial support, but also their operational activities.
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