Committee Report on Department of Public Enterprises Strategic Plan 2013

Meeting report

Committee Report on Department of Public Enterprises Budget Vote
The Chairperson requested the Committee Secretary, Mr Disang Mocumi, to take the Committee through the Draft Report.

Mr Mocumi complied with the Chairperson’s request and took the Committee through the more important portions of the Draft Report.

The Chairperson thereafter asked for guidance from Members as to how they wished the Committee should consider the Draft Report.

Dr G Koornhof (ANC) suggested that the Committee consider the Draft Report page by page.

The Committee agreed to this suggestion.

The Chairperson proceeded to take the Committee through the Draft Report page by page.

Dr Koornhof referred to page 2 and page 5 and suggested grammatical changes to which the Committee agreed to.

Ms N Michael (DA) referring to paragraph 3.3.3 on page 6 and suggested that the Draft Report should reflect that the Committee needed to increase its oversight over the financial statements of South African Airways (SAA) and SA Express (SAX).

Dr Koornhof pointed out that paragraph 3.3.3 was only a summary of the Department of Public Enterprises’ Annual Performance Plan and hence what Ms Michael was requesting could not be included in that paragraph. What was suggested by Ms Michael could perhaps be included under the Committee’s observations.

The Committee agreed to include Ms Michael’s suggestion under the Committee’s observations in the Draft Report.

Dr Koornhof referred to paragraphs 3.6 and 3.7 on page 8. He pointed out that in paragraph 3.6 it stated that the budget of the Department had decreased from R3.9bn to R279m. In paragraph 3.7, mention was made that the number of employees in the Department had increased from 168 employees to 210 employees. He was baffled by the anomaly that even though the budget of the Department had decreased the number of employees had increased. He felt that the reason behind the occurrence needed to be captured in the Draft Report.

The Chairperson said that Dr Koornhof’s point was noted.

Dr Koornhof felt that the reason for the anomaly could be that even though there had been a decrease in the Department’s budget the responsibility of oversight had increased considerably and hence more staff was needed to do oversight. He however still wished to have an explanation from the Department.

Ms Caroline Mafanya, Parliamentary Liaison Officer, Department of Public Enterprises, agreed to consult with the Director-General on the issue and get back to the Committee.

Dr Koornhof referred to page 9 and suggested a grammatical change to which the Committee agreed. On the same page mention was made that the Parliamentary Liaison Officer, he felt that the Committee needed a link.

Ms Michael also referring to page 9, specifically to the paragraph titled, “Conclusion” wherein it stated that “ the Committee recommends that the House passes the budget.” She noted that the Democratic Alliance (DA) was still in caucus and that the DA reserved its right not to be in favour of the budget.

The Committee noted Ms Michael’s and the DA’s stance.

The Draft Report was placed before the Committee for consideration and it was adopted as amended.

Committee Minutes
Minutes dated 12 March 2013
The Chairperson placed minutes dated the 12 March 2013 before the Committee for consideration.
Grammatical changes were effected to the minutes and it was adopted as amended.

Minutes dated 19 March 2013
Minutes dated the 19 March 2013 was placed before the Committee for consideration.
Dr Koornhof referred to page 6 of the minutes under the heading; ”Conclusions” which stated, “The Committee resolved the Department of Public Enterprises should appoint a permanent leadership at South African Airways, secondly, they should resolving the issues that involves Denel and the Department of Defence and Military Veterans.”
He asked what was meant by the term “permanent leadership”.

The Chairperson responded that it referred to the Chief Executive Officer.

Dr Koornhof felt that the paragraph should be more specific.

Mr K Dikobo (AZAPO) asked who appointed the Chief Executive Officer. He was sure it was the Board of South African Airways.

The Chairperson suggested that the paragraph be reworded to the effect that the Department of Public Enterprises should ensure that persons should be appointed by the Board.

The Committee agreed.

The minutes dated the 19 March 2013 was adopted as amended by the Committee.

The meeting was adjourned.