Question NW3108 to the Minister of Public Enterprises (1) What are the cost implications for the Government regarding the new State Asset Management Company as proposed in the National State Enterprises Bill that was recently opened for public comment, considering that some stateowned companies (SOCs) would allegedly be included, with others shut down
04 October 2023 - NW3108
Hlengwa, Mr M to ask the Minister of Public Enterprises (1) What are the cost implications for the Government regarding the new State Asset Management Company as proposed in the National State Enterprises Bill that was recently opened for public comment, considering that some stateowned companies (SOCs) would allegedly be included, with others shut down
(1) What are the cost implications for the Government regarding the new State Asset Management Company as proposed in the National State Enterprises Bill that was recently opened for public comment, considering that some state owned companies (SOCs) would allegedly be included, with others shut down. (2) Whether any costing was done regarding (a) setting up the new company and (b) winding down the SOCs that are not included; if not, why not in each case; if so, what are the detailed costs in each case?
Reply:
1. The financial obligation with respect to the development of the National State Enterprises Bill is borne by the Department of Public Enterprises. For 2023/24, budget has been allocated and ring-fenced for the necessary external project support and expertise under the Departmental funds for the processing of the Bill. Working capital of the Holding Company will need to be secured, and consultation with the National Treasury is on-going in this regard.
2. (a) Preliminary costing of the HoldCo has been done on the basis that it shall become self-sustainable in the short term. The Holding Company will derive dividends from its subsidiary companies and it is envisaged that this income stream will be sufficient to cover its operational costs.
(b) The closure, merger or restructuring (some which is already happening, e.g. in Small Business Portfolio) will be considered by government on the basis of recommendations of the PSEC.
Remarks: Reply: Approved / Not approved
Jacky Molisane PJ Gordhan, MP
Acting Director-General Minister
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