Saturday, March 14, 2009

National Union of Mineworkers of South Africa (NUMSA): State must bail out any company

Let's re-think this one: one gives money to weak companies so they can then compete with companies which were careful, intelligent and prudent. Most probably money will be handed out to companies with CEO's with connections high up in the ANC/COSATU food chain. Even capitalism will then be a state affair and highly politicised. Like in the USA. This will then be a New World, unchartered territory of mass unemployment, Zombie companies and major power for the politicians. Having said this, what's the difference?

NUMSA: State must bail out any company
14/03/2009 19:20 - (SA)

Johannesburg - The State must implement urgent measures to bail out any company facing closure, National Union of Metalworkers' of South Africa (Numsa) general secretary Irvin Jim said on Saturday.

Jim who was speaking at the Numsa job security conference in Midrand told journalists that the State should make available credit guarantees, low interest and emergency bridging loans to companies.

"Such bailouts must be conditional. A State agency is required to undertake investigations of company finances as part of the process."

Jim also said the government Multi-Billion-Rand Stimulus Package must be implemented equitably across all regions.

"Provincial government must actively engage in the process. The bailout should not go towards CEO bonuses or pay for industry inefficiencies," he said.


UPDATE: SEVERAL firms in the vehicle industry have already approached the Industrial Development Corporation (IDC) for funding to help prop up their balance sheets.

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