Privatisation of Profits and Socialising Losses

Reading my Business Report today, I could not help it but agree with Remgro Chairman Johann Rupert sentiments with regards to bank bailouts by governments across the world. My favourate part of this article is what he alluded to "Rupert said that he was appalled at the bank bailouts that has had occured in the UK and the US, noting that it suggested a public policy of "privatisation of profits and socialising of losses". This really got me thinking, about the South African context with regard to two three two parastatals names Eskom and SAA. I would have went three and included the SABC, but for now I would leave them out of this box. Lets face it the problems at SABC, whether financial or otherwise are heavely influenced by the political discourse not withstanding the fact that they generally finance themselves through advertising revenue.

Now back to the two parastatals, it's strange that executives in these two organisations have been getting exorbitant bonuses for a number of years. This is without the foresight to the current financial situation at this organisations. Unfortunately, bonuses were given and the shortfalls in terms of planning has ironically become the burden of governments and as a result rob the poor. Why should we continue to reward contractual obligations, that are not tied to the best performance still puzzles me. It is the citizens of this country that have to pay for the incompetence, via bailouts and loands. These executives are taking developments at grass roots level backwards unfortunately. Resources which could be used to address the inequalities of our society are used to feed huge bellies of executives. The result is that development is delayed, and social injustice prevail the gap between the rich and the poorer gets even wider.

Yesterday GDP figures confirmed, what the people at the ground level have been saying all this time along. This country is in a recession. I hate to paint a negative picture based on the figures, but we ought to hold executives accountable. We cannot afford to have gravy train situations any longer with regards to people that we put in positions of power. The sentiments expressed above are also applicable to the corporate sector. Privatisation of profits, in honesty hasd led to these endless strike marches. Corporate executives have lost touch with core assets of production the labour force in their conquest to impress shareholders with over the top balance sheet and at individual level increased bonuses. It's strange that when times get touch as their currently, it is the same executives that will request leniency from the labour force than from shareholders.