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Cape Town - The National Union of Mineworkers (Num) on Friday scoffed at the idea of the state holding the majority shareholding in a mining company.
Addressing MPs on parliament's committee overseeing public hearings on the creation of a state mining company, Num's Madoda Sambatha set out how private shareholders - "irrespective of race" - should hold a 49% share. The state should have a 31% shareholding and workers should be given a 10% stake while, the remaining 10% should be held by a community, traditional authority or worker cooperatives.
Sambatha also said profits earned by the state should not be absorbed into National Treasury coffers, because government's budget process is "flawed".
Government judgement is not perfect
The revenue generated for the state should be pumped into healthcare, education and developing poor communities.
"This does not become a song that we are going to increase revenue for national government and then treasury to decide where it [the revenue generated] goes," Sambatha said.
"The way you [MPs] decide the budget is flawed. Why does the Eastern Cape, for example, get such a small share of the budget when it has the greatest developmental needs? You [parliament] are not channelling funding on the basis of developmental needs."
Sambatha also said legislation should ensure that state profits are never re-directed to company executives in the form of bonuses, as occurs with parastatals.
"It should never the case with state mining. Mining must be redirected to reclaim its central role to develop human resources, artisans," said Sambatha. He also called on MPs to ensure that the state-owned mining company closed the gap between executive and worker pay.
- Fin24.com
Addressing MPs on parliament's committee overseeing public hearings on the creation of a state mining company, Num's Madoda Sambatha set out how private shareholders - "irrespective of race" - should hold a 49% share. The state should have a 31% shareholding and workers should be given a 10% stake while, the remaining 10% should be held by a community, traditional authority or worker cooperatives.
Sambatha also said profits earned by the state should not be absorbed into National Treasury coffers, because government's budget process is "flawed".
Government judgement is not perfect
The revenue generated for the state should be pumped into healthcare, education and developing poor communities.
"This does not become a song that we are going to increase revenue for national government and then treasury to decide where it [the revenue generated] goes," Sambatha said.
"The way you [MPs] decide the budget is flawed. Why does the Eastern Cape, for example, get such a small share of the budget when it has the greatest developmental needs? You [parliament] are not channelling funding on the basis of developmental needs."
Sambatha also said legislation should ensure that state profits are never re-directed to company executives in the form of bonuses, as occurs with parastatals.
"It should never the case with state mining. Mining must be redirected to reclaim its central role to develop human resources, artisans," said Sambatha. He also called on MPs to ensure that the state-owned mining company closed the gap between executive and worker pay.
- Fin24.com
