Question NW11 to the Minister of Public Enterprises
19 August 2019 - NW11
Buthelezi, Ms P to ask the Minister of Public Enterprises
(1) Whether, with reference to his interventions by appointing senior managers that have subsequently resigned, he has found that the rot within the state-owned entities runs too deep for it to be reclaimed; if not, what is the position in this regard; if so, (2) Whether he intends to introduce public-private partnerships; if not, why not; if so, what are the relevant details?
Reply:
(1) |
(a) |
As a matter of clarity, the Minister, with the concurrence of Cabinet, appoints the Board of Directors of the State-Owned Companies (SOCs). He appoints the CEOs and CFOs on the recommendations of the Boards. Only where Boards seek the Minister’s concurrence on appointments of other Executives at subsidiary level, does the Minister express a view. There are various reasons for resignations at the SOCs, such as end of contract terms, personal reasons and the difficulties posed by the damage caused in the institutions. |
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(b) |
The rot within SOCs is deep but can be overcome. This is demonstrated by among others, the following achievements that have been registered under the leadership of the current boards:
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(i) Eskom
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(ii) Transnet
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(iii) State Capture Inquiry
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(c) |
The progress highlighted above and the preparedness of the current leaders in each SOC demonstrated that:
However, to be frank, overcoming the full impact of State Capture and corruption requires vigorous effort and courage from Boards and Management.
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(2) |
SOCs within DPE portfolio are experiencing financial difficulties. The process to turn-around SOCs is ongoing. This will culminate in the review of the operating models of the SOCs. Furthermore, in some SOCs Strategic Equity Partners (SEPs) will be brought in to partner with SOCs in improving some operations. In that vein, SOCs will provide the Minister with proposals on areas where private partnership are required. Denel has a few examples of this kind of partnerships |