Vince Cable was heard on TV the other night stating what I anyway consider to be a great truth - its simply this - that when private sector failures happen the shareholders cannot expect the state( taxpayer) to rescue
their interests from failure - while in the good times they simply carry on and make profits. That is a one way bet. Hence the recent past great mistake made by governments in bailing out the banks. In the case of SA's almost univerally disastrously managed SOE 's the position is that the onus is ALLWAYS on the state both as the shareholder representative . and in the accountable quasi executive role of the Minister to encure that no call is made upon the taxpayer that is unwarranted in the context - of providing essential services - but here we have examples that do not stack up- SAA and so on. And in the context of SNH - any actions that the state organs may take are always going to be limited to addressing regualtion/negligance/ criminality -and that does not give rise to some obligation to make good losses.
