President Kgalema Motlanthe on Sunday did not rule out the possibility of the government bailing out companies facing bankruptcy because of the current global financial crisis.
Briefing the media at Tuynhuys in Cape Town, Motlanthe said that while the government did not have a special fund to bail out companies, it could be compelled to intervene if the crisis reached a point where companies were facing closure.
”We do not have a special fund for giving to companies, the primary area is to save jobs.
”We would look at all options because if companies go under there [are] no jobs to save,” he said.
It was difficult to spell out the extent to which the government would intervene as the full impact of the crisis had not yet been established, he said.
”This meltdown is an unknown quantity — we have not touched the ground yet — it’s very difficult to say it’s a depression or a recession,” he said.
The government had set up a task team to investigate the crisis and advise the state on the best possible way to respond.
Meanwhile, Motlanthe also conceded that the current practice where the head of the National Prosecuting Authority (NPA) is exclusively appointed by the president is flawed.
Motlanthe said the appointment process would be more credible if it was carried out by an independent body such as the Judicial Service Commission (JSC).
”I think it would be better if the appointment of the National Director of Public Prosecutions were to be done by a body such as the JSC,” he said.
The public would view the process as more credible if an organisation such as the JSC were to shortlist candidates and submit a list to the president for appointment.
Under the current National Prosecutions Authority Act, Motlanthe can appoint a person of his choice to replace suspended NPA head Vusi Pikoli.
”These are some of the weaknesses in the Act that really deserve correction,” Motlanthe said. — Sapa