Question NW4149 to the Minister of Public Enterprises
08 January 2024 - NW4149
Buthelezi, Mr EM to ask the Minister of Public Enterprises
Whether his department will review the current model of fixing state-owned enterprises which has proven to be ineffective; if not, why not; if so, what are the relevant details?
Reply:
The impact of state capture and the climate of rentseeking and corruption at all levels, including the deliberate efforts of previous boards and management to force the departure of honest and skilled professions, particularly black professionals, will take unrelenting and courageous commitment to overcome.
Much progress has been made to recover operations, introduce skills and financial controls to overcome the legacy of corruption.
However, introducing ethical business practices in the private sector, both global and local, big and medium businesses, will require a total societal commitment. All social actors, including political parties, (many of which do not necessarily have “clean hands”) must publicly take an uncompromising stand on corruption and operational efficiency, and be seen to act accordingly – not just attempt to make political capital from a matter that we must act on the basis of national interest.
Boards and management at various entities are constantly introducing innovations and undertaking a constant battle against all forms of negativity.
This also involves new initiatives by the President and cabinet. The Presidential SOE Council (PSEC) is one such example.
The PSEC recommended that the Centralized Model be adopted to oversee the State-Owned Enterprises (SOEs) with development of the National Enterprises Bill and formation of the State-Owned Holding Company. On this basis, the Department then developed the National State Enterprises Bill. The Bill was published on 15 September 2023 for public comment, and the public comment period concluded on 14 October 2023. The Bill incorporates PSEC’s recommendation to adopt a centralized shareholder model to improve the management and oversight of South African State-Owned Enterprises (SOEs).
Eventually, we shall overcome the forces of darkness, corruption and negativity – the bankruptcy of ideas permeating many at present. Slogans alone will not work!
Remarks: Reply: Approved / Not approved/ Comments
Jacky Molisane PJ Gordhan, MP
Acting Director-General Minister
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