The DA had noted that government had extended a R1.8 billion bailout "to the money pit that is Denel", DA spokeswoman Natasha Mazzone said.

"We are of the view that this billion rand bailout for a defunct state-owned entity (SoE) is not sustainable. Simply throwing money at Denel won’t fix it. The arms manufacturer needs an overhaul," she said.

An incredulous amount of the people’s money had been spent on SoEs and yet the public was getting very little in return. 

It was no longer rational or feasible for government to have full ownership of Denel and it should be partially privatised. There were many defense companies in the world that would be interested in buying off shares and the government should explore these possibilities.

Bailouts provided temporary relief to SoEs, but caused permanent damage to the national fiscus.

"By privatising this entity, we will reduce the impact of government guarantees on the fiscus, promote competitiveness, improve efficiency, and stimulate job creation," Mazzone said.

ANA