Committee Matters

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Public Enterprises

23 May 2018
Chairperson: Ms L Mnganga-Gcabashe (ANC)
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Meeting Summary

The Committee considered outstanding minutes from January to May 2018. They were approved with minor technical amendments. A significant matter arising from the minutes was a request from the DA that the Chairperson speaks to the Minister about cash injection into SA Express airline. The Chairperson reported that she had spoken to the Minister, who in turn had spoken to the Minister of Finance. Both Ministers appreciated that the Committee was taking a firm stand on the matter. The Minister would visit the airline. There was a call from the Committee during discussion for a hands-on approach, with quarterly or bi-monthly reports from the airline about cash injection.

In her update on the Overvaal Resorts Repeal Bill, the Chairperson noted that a statement was issued the day before to invite submissions and comments on the Bill. The Department had not as yet resolved how the bill would be tagged, which could delay the processing of the Bill.

Meeting report

Adoption of minutes
The Chairperson took the Committee through the following minutes of 2018, namely 23, 24 and 30 January; 6, 27, and 28 February; 7, 13, 14 and 27 March; 17, 18 and 25 April; and 2, 9 and 16 May.

All minutes were adopted with minor technical amendments. There was no discussion about content.

Matters arising from the minutes
The Chairperson responded to a request by the DA that she discuss assistance to the SA Express airline with cash injection, with the Minister. She had discussed the matter with the Minister of Public Enterprises, who appreciated the Committee’s concern. The Minister took the matter up with the Minister of Finance. It was planned to visit the airline. Both Ministers appreciated the Committee’s firmness with the entity.

Ms D Rantho (ANC) commented that there had to be a hands-on approach, with quarterly or bi-monthly reports on cash injections. Feeling sorry for the airline would simply lead to continuous repetition. She was approached by airline workers who were worried about their future. They feared that they would be out of work within two to three months. The Committee had to follow up on its recommendations.

Mr E Marais (DA) remarked that when transport was unbundled years before, not enough was split off to airlines. There were different airlines that needed capital injections. The problem was never properly addressed. Each airline had a needs market and could make a profit. The Minister had to find a solution.

The Chairperson replied that the Minister would negotiate with the Finance Minister. Due to cost-cutting measures the Committee could not exercise sufficient oversight. An oversight visit to SA Express was not approved. The Committee would have to rely on the visit by the Minister for feedback.

Update on the Overvaal Resorts Repeal Bill
The Chairperson reported that submissions were still being received from the public. A statement was issued the day before to invite comment. The issue would be revisited and the process assessed. There was uncertainty about the tagging of the Bill. If it in fact belonged to the provincial government (section 76) the tagging would have to be changed. The Department had not resolved the issue, which caused delay. The House Chair had instructed the Committee that if it was not the responsibility of the Portfolio Committee, the Bill had to be taken off its agenda. The Committee would have to assess, and go back to the Department about tagging. The Bill would be dealt with in the following week.

The Chairperson adjourned the meeting.  

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