|
|
|
|
|
|
| ||||
|
CLEARLY IRRITATED . . . Stella Sigcau, who sees her way clear to privatisation Privatise or bust as Sigcau puts neck on line Consensus with stakeholders seems to have cleared the way, writes SVEN LUNSCHE 'We will continue to consult but are primarily looking at ways of fast-tracking the process' STELLA SIGCAU, Minister of Public Enterprises, is putting her neck on the line - this week she named eight public-sector corporations which will be in private hands by the end of next year. In an interview, Sigcau showed clear irritation at sustained criticism of the way she has handled the difficult task of restructuring and privatising the many companies owned by the government. "There is no understanding of the complexity of the process involved. We have to tread carefully to ensure consensus on the process, which has now been achieved," she says. Sigcau expects a rapid acceleration of the restructuring process and has committed herself to a detailed report, to be tabled by mid-March. Partial and full privatisation will be a crucial part of this process, she says. Extensive consultation with the trade unions has resulted in meaningful consensus about the restructuring process. "We will continue to consult but are now primarily looking at ways of fast-tracking the privatisation process." By the end of 1997 she expects resort group Aventura, mining group Alexkor, Sun Air and Transnet's Autonet division to be fully privatised. Telkom, the Airports Company and forestry group Safcol should have strategic equity partners by December 1997. Furthermore, three mothballed power stations owned by Eskom will be sold to foreign utilities, she says. Sigcau also indicated that SA Airways would seek a foreign equity partner by mid-1998, "after putting the airline in better shape so we can raise more funds than we would get at present". SAA is facing losses totalling hundreds of millions of rands in its current financial year after a slowdown in business and tourist travel as well as a higher oil price, which is pushing its fuel bill to R1,4-billion. It is also involved in negotiations with US manufacturer Boeing to buy seven new aircraft at an original cost of R3,5-billion. "We clearly need a financial and technical partner to help SAA achieve its international and local expansion plans," says Sigcau. Analysts believe that the first two groups on the block - March is widely cited as the date - will be the two most profitable companies in the public sector, Sun Air and The Airports Company. Both fall under the jurisdiction of the Department of Transport. Sun Air will be fully sold, a deal that has secured the backing of staff. Richard Branson's Virgin Airlines, with whom Sun Air has a strategic alliance, is favoured to take the 25% shareholding that can be sold to foreign investors. Another profitable operation is Autonet, a division of Transnet, which falls under the jurisdiction of Sigcau's ministry. Sigcau says that there is a commitment to sell Autonet although it still has to be decided whether to sell it as a going operation or sell off its individual divisions to private companies. Transnet has proved the major headache for Sigcau. Management appears reluctant to commit itself to a widespread sell-off of its operations before overhauling its personnel structure, including an extensive affirmative action programme. Analysts have suggested that the government is wary following recent Transnet developments and is undertaking a thorough assessment of the performance of both executive and non-executive directors. Another company reporting directly to Public Enterprises is Denel, which houses the former manufacturing divisions of Armscor. Sigcau recently lambasted Denel management for lack of affirmative action but this week she took a more lenient stance. She suggests that it is important to retain management skills at the group, which will be undergoing a comprehensive audit of its operations over the next few weeks. She says she has asked the Ministry's advisers, merchant bank HSBC Simpson McKie, to conclude the investigation by March next year. Negotiations on the process of restructuring between government and the trade unions are conducted under the National Framework Agreement, established earlier this year. The business sector will initiate discussions at Nedlac next month, to be included in the NFA talks. However, Sigcau says that broadening the consultations will not speed up the process and suggests instead that the business sector actively involve itself in the development of infrastructure by the parastatal sector.
|