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Those financially distressed companies that have received or are seeking State support have to comply with stringent conditions, covering everything from executive bonuses to limiting job cuts, Economic Development Minister Ebrahim Patel said on Tuesday.
Addressing the media in Cape Town, Patel said that government was on target to dispense up to R1-billion of funding for distressed firms through the State-owned Industrial Development Corporation (IDC).
However, Patel noted that "strong conditionalities" would be put in place for companies accessing such support.
Four conditions, in particular, were highlighted: a commitment to saving jobs or expanding employment opportunities; a restraint on executive remuneration; greater local content in production and manufacturing; and more effective dialogue and partnership with labour.
Applications for financial support would be reviewed on a case-by-case basis against those requirements, said Patel.
To date, IDC financial support to distressed companies had helped save 7 700 jobs, he added.
Edited by: Terence Creamer
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Economic Development Minister Ebrahim Patel (Picture: Duane Daws)
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