Question NW3631 to the Minister of Public Enterprises

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23 November 2023 - NW3631

Profile picture: Essack, Mr F

Essack, Mr F to ask the Minister of Public Enterprises

(1)       Considering that the Judicial Commission of Inquiry into Allegations of State Capture, Corruption and Fraud in the Public Sector including Organs of State recommended the appointment of a standing and oversight committee that would host transparent appointment criteria and processes, including independent public nominations, for appointing boards and executives for stateowned enterprises (SOEs) in order to improve governance at SOEs and address the scourge of cadre deployment, what is the reason that the Government has failed to establish the committee in line with the recommendations of the Commission; (2) Whether the Government has any plans to establish such a committee to expedite the appointment of meritorious individuals in SOEs; if not, why not; if so, what are the relevant details?


13 On 13 September 2023, Cabinet approved the publication of the National State Enterprises Bill in the Government Gazette for public comments. The Bill was published for public comments on 15 September 2023.

In response to the valuable feedback received from public comments, the Department is diligently engaged in the refinement process for the National State Enterprises Bill. The ongoing refinement efforts are specifically aimed at integrating the insightful public comments into the fabric of the legislation. Central to this endeavour is the Department's commitment to crafting a revised Bill that not only addresses the concerns raised during the public commentary period but also establishes a comprehensive and inclusive framework for the appointment of boards within State-Owned Enterprises (SOEs).

The envisaged revisions seek to go beyond a mere legal framework. The Department aspires to codify a board appointment process that embodies the principles of transparency, equity, and fairness. By emphasizing these core values, the Department aims to instil a robust and accountable mechanism that stands as a testament to the commitment to good governance and stakeholder inclusivity.

(2) The envisaged processes for appointing board members to SOEs are expected to be comprehensive, designed to uphold transparency, fairness, and meritocracy. This will necessitate a thorough evaluation of candidates based on qualifications, experience, and alignment with the strategic objectives of the relevant SOEs. The government remains steadfast in its commitment to ensuring that appointments adhere to established legislative frameworks, including the Public Finance Management Act 1 of 1999 (PFMA), Companies Act 71 of 2008, and other pertinent statutes governing SOEs.

The government maintains vigilance in refining and improving existing processes to address challenges and enhance efficiency. Continuous efforts are made to draw lessons from experiences, both domestic and international, adapting best practices in governance.

Remarks: Reply: Approved / Not Approved

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

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