A case of robbing Peter to pay Paul
20 February 2020
When the largest trade union in a country seriously suggests that failing state-owned enterprises (SOEs) should be the recipients of savings in pension funds, one could be forgiven for thinking that magic rather than logic has taken over.
If such a country was a family, it would be tantamount to a father raiding his child’s college fund to pay his gambling debts, or cashing in his pension to do the same. Yet, that is what Cosatu has suggested.
This is so obviously a bad idea that it is extraordinary how many intelligent people have decided it worth trying to rescue Eskom by raiding pensions --and those of many Cosatu members to boot.
Even if this madness prevails, most economists seriously doubt it will do more than put off Eskom’s inevitable death in its present form, and only temporarily relieve its parlous financial situation.