Government can't analyse financial statements - he urges for more professionalism

February 7, 2018, 11:33pm

State owned enterprises minister, Leon Jooste, has said there can not be logic behind calling upon public enterprises to submit annualised financial statements when their shareholder was not in a position to analyse them.

Jooste was speaking at a business breakfast on State Owned Enterprises: Urgency for Reform where he noted that government has to blame itself for encouraging a culture of non-performance at SOEs.

“We have not managed to be professional shareholders of state owned enterprises. What we blame public enterprises for is what we ourselves caused,” said the minister in his presentation.

The minister, who was at pains to use diplomatic language in painting the somber picture of the country’s failing public entities, pin-pointed that the “bail-out culture” was allowed to perpetuate by the shareholder.

“In Australia, government does not bail out SOEs, they instead lend them on interest,” he said.