Struggling state-owned South African companies

Cyril Ramaphosa, who has been president for almost two years, promised to clean up the companies but has in fact made little headway. 

"State-owned entities require urgent attention," Auditor-General Kimi Makwetu said in a report this week.

He added that the financial situation of state-owned enterprises in general "remained under significant pressure."

Makwetu voiced "significant doubt about whether some of the SOEs can continue with their operations in future without financial assistance."

Following are major problem cases, and one relatively positive one.

- Energy giant Eskom - 

Eskom provides around 95 percent of the electricity used in South Africa, mostly with coal-powered generating plants.

They are old and poorly maintained however, and result in regular power shortages that hamper activity in Africa's biggest economy.

ALSO READ: De Ruyter will bring stability to Eskom: Cabinet

Eskom employs 46,000 people and has amassed 450 billion rand ($30 billion) in debt, even though the state has injected 128 billion rand into the company over a three-year period.

Ramaphosa plans to split the group up into three separate units, production, transportation and distribution.

- Flag carrier SAA - 

Interim chief executive Zuks Ramasia acknowledged recently that the airline's accounts have been in the red for years, despite cash injections by the state.

SAA last reported a profit in 2011, and has 9.2 billion rand in debt.

ALSO READ: SAA retrenchments pushed back until January

In November, the carrier unveiled a restructuring plan that could eliminate almost 1,000 positions among its overall staff of nearly 5,200 people.

Former head Dudu Myeni, who was close to Zuma, has been accused of "illegal practices" and company mismanagement by a commission probing corruption under the former president. 

- Media group SABC -

The company owns three television stations and 18 radio stations that broadcast in 11 languages and employ 3,370 people.

It received a bailout package worth 2.1 billion rand in October.

ALSO READ: SABC seeks to reverse irregular appointments 

From April 2017 to March 2018, SABC lost 622 million rand, on top of a record loss of around 970 million a year earlier. 

- Post Office - 

The South African Post Office has posted deficits for more than a decade owing to obsolete technology, an outdated business model and spotty service.

ALSO READ: Post Office: 174 workers flagged with criminal records

In February, the state injected 1.5 billion rand to keep the service running, and it recently announced that it will eliminate almost 800 jobs.

- Arms manufacturer Denel -

In June, the group that employs 3,400 people secured loans from a consortium of banks so that it could pay their wages, Public Enterprises Minister Pravan Gordhan has revealed. 

In August, the state granted Denel 1.8 billion rand as part of a rescue plan.

- The Transnet exception -

One company that stands out meanwhile is freight group Transnet, which employs 56,000 people.

In 2018, it reported record results with a 75-percent leap in net profit to 4.9 billion rand.

ALSO READ: Molefe ‘unilaterally’ changing contract left Transnet exposed, Zondo commission hears

In January, Transnet nonetheless launched legal proceedings against several former executives to try to recover millions of rands.

Transnet charges that they siphoned off the money while attributing contracts in a non-transparent manner.