It's no secret that I am not a fan of South African state-owned enterprises.
I can see how they can be a force for good, despite being a pillar of nationalism, propping up socialism in a capitalist society.
But in the South African context, it has been nothing short of disastrous.
And this was reinforced when I learned that the head of a government agency earns more than the head of that government.
The CEO of the National Empowerment Fund (NEF), Philisiwe Mthethwa, has a combined salary package of R6 million a year, R2 million more than President Cyril Ramaphosa.
Now whichever way you spin that, it just seems wrong to me, especially since the NEF is unable to fulfil its mandate because it is practically bankrupt.
Ironically, its mandate is to provide capital funding for black entrepreneurs.
This is not the only such example.
There are dozens of CEOs of government agencies who earn huge salaries, often more than the ministers they report to.
One argument is that these individuals are highly skilled, well-educated and must be remunerated according to industry standards, or we will lose them to the private sector.
Firstly, if they are better educated than the ministers they are reporting to, then shouldn’t they be switching roles with the minister?
But that’s an argument for another day.
The fact is, these individuals are never as effective as their education leads us to believe.
They seldom, if ever, turn these parastatals into profitable entities.
Instead they drain the companies dry before leaving with a golden handshake (often leaving a trail of suspicion and destruction in their wake).
The first such example we had was with the American head of SAA, Coleman Andrews.
Remember him? He left SAA under a cloud of suspicion and a R230 million payout.
And now the airline is right back where it started, after Andrews’ supposed genius leadership was meant to turn things around.
IMBALANCE: President Cyril Ramaposa earns less than state bosses. Picture: File image.
Let me repeat a belief I have expressed before.
To explain the continuous mess we are in, I have previously compared the country to a business in which you have made an investment.
You understand that it’s a risk, but you go ahead anyway, based on the fact that the CEO is competent and the projections look sound.
The following financial year, you are asked for more money, because your original investment has been stolen, misspent and looted.
Now imagine this goes on year after year.
That’s exactly what is happening in the case of parastatals like SAA, the SABC, Eskom, Transnet and others.
And because we are legally obligated to pay our taxes, when the state bails them out, we are forcibly re-investing in those companies, full well knowing that it is a black hole that sucks up cash faster than you can say “nepotism” or “corruption.”
These supposed business experts who gamble with our tax money are not exceptional in any way.
Anyone with a vague inclination towards business can walk into an existing company that has access to unlimited funds, sign a few documents, delegate some responsibilities and bark a few orders at staff, before walking away feeling accomplished.
People who work around the clock to build up businesses from the ground with little help, no capital and no cash reserves are the ones our government should be looking at to head up parastatals.
Can you just imagine what some of those black entrepreneurs that Mthethwa is supposed to help fund, would be able to achieve with the money she takes home every month?
And the ones I meet on a regular basis, who are frustrated by the lack of support and funding, all have a lot more great business ideas and are much more talented than Mthethwa and Andrews put together.
And I would venture a guess and say that they wouldn’t bleed our coffers dry in the process.