Bailouts of any nature are wrong as they reward inefficiencies, mismanagement and set a bad example. The other reason is who should be bailed out and who should not. If you are a large organisation and you hire thousands or a small one employing just a few.
Mathews Phoza made a comment yesterday that he would not bailout private companies. The reason is that he cannot reward those enterprises for mismanagement and the huge bonuses that are paid to these executives. I agree with him.
He also stated that they would consider bailout for public enterprises. This is just as unacceptable and government are setting a bad example. One of the ANC election manifestos is to have a government that is accountable to the people, is efficient and implements the policies of the ANC.
Better governance, is the key for economic growth and a better life for all. That indicates that government should also not bail out public enterprises and go back to the late 90’s or early 2000 when these enterprises were been privatised.
