Nene warns of ‘famine’

Minister of Finance Nhlanhla Nene expressed concern at the state of some government-owned entities, saying the government was working tirelessly to rid them of the crisis they were in.

He was referring to this week’s post office strike over salaries and other internal issues. “There are issues at the post office and it’s one of the institutions that we are looking at in our efforts to resolve salary issues.”

The minister was, however, confident that the task team set up by President Jacob Zuma to look into the issue of free university education would yield positive results.

On the sidelines of the Minara Chamber of Commerce Recognition Awards on Friday at the Durban City Hall, Nene said although he would not like to pre-empt the outcome of the task team, he was hopeful it was going to be a viable recommendation for all involved.

The departmental task team, comprising the Treasury, Higher Education and the Presidency, is expected to report to Zuma next week, according to Nene.

“All the stakeholders have come together to look into this issue. Let’s wait for the task team to make its recommendation and we will take it from there,” he said.

Last week universities across the country ground to a halt as students protested against the fee hikes for next year. The protests saw the rise of the #FeesMustFall campaign which garnered support in Britain and other countries.

Nene said it was of critical importance for the state-owned enterprises (SOEs) to get their houses in order. “We are focusing on making sure that we create sustainability,” he said.

In an effort to pull state-owned enterprises back from the brink, a committee was formed chaired by Deputy President, Cyril Ramaphosa, and of which Nene is also a member.

“State-owned enterprises are an important tool to create employment and that is why we want to ensure that they remain functional,” he said.

He issued a word of caution to big spenders prior to the festive season to tighten their belts because the country was going through a “famine”.

“We are faced with a difficult period, be it in business or households everyone is going through a difficult time. We urge people to use their resources sparingly and abstain from making debts,” he said.

Asked as to whether the country should be bracing itself for tax hikes next year, he said: “I wouldn’t draw myself into speculating, we will have to wait and see how the economy performs.”

The new president of Minara Chamber of Commerce, Ebrahim Patel, said the government must look into easier ways of doing business.

“In a modern world of technology, it should not take six months for a business to be registered and get its licence to operate. It should not take months for businesses to get approval for government grants and funding programmes.”

Patel said it was unacceptable that 21 years into democracy the country was faced with challenges of economic inequalities and social imbalances.

Nene agreed, saying the government must diffuse the situation as a matter of urgency. Referring to Phumlani Mfeka’s anti-Indian sentiments, he said: “It’s an unfortunate situation and our National Development Plan promotes social cohesion and the issue of racial tolerance among all racial groups is of critical importance.”

Among those who were recognised was the KwaZulu-Natal Judge President, Achmat Jappie, for his leadership role in the law fraternity.

Political Bureau

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