Question NW4150 to the Minister of Public Enterprises
14 December 2023 - NW4150
Buthelezi, Mr EM to ask the Minister of Public Enterprises
Whether his department has any projected capped amount at which it will cease to provide financial relief to state-owned enterprises; if not, why not; if so, what (a) is that amount and (b) are the further relevant details?
Reply:
The Department has no capped amount at which it will cease to provide financial relief to state-owned enterprises. Each request for financial relief is assessed on its own merit. The factors to be considered are diagnosis of the challenges the SOE is facing and the development of turnaround plan to remedy those challenges.
The Presidential State-Owned Enterprises (PSEC) was established by the President in 2020, of which the Department is the Secretariate. The task of PSEC is to reform, reposition and revitalise the SOE’s not only within the Department’s portfolio but others as well. The exercise will require some funding which may be from Government and/or from other sources including disposal of non-core assets, private sector participation amongst others. Funding will therefore be assessed on a case-by-case basis.
It must be emphasised that SOEs should not operate on the basis that they will always receive funding from the fiscus. In fact, SOEs must be viable in their own right as soon as possible.
Remarks: Reply: Approved / Not Approved
Jacky Molisane P J Gordhan, MP
Acting Director-General Minister
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