Chairperson: Mr Y I Carrim

Committee Secretary: C T Thisani

It has been a challenging year for the Committee. The formal Committee meetings must be linked must be linked to the extensive study tour programme to get a better sense of the activities of the Committee for the year. All the SOEs falling within our portfolio we have been visited this year and valuable lessons have been drawn on the nature of these SOEs and the tasks entailed in effectively exercising oversight over them.

The Committee dealt with a wide range of issues. Many of them are rather complex, technical and challenging. Compared to last year, however, the Committee is presently much better equipped its oversight role. But we still have a long way to go. Clearly the Committee needs a full-time researcher to be effective. But we also need access, at times, to expert advise from energy, transport and defence specialist.

The committee has produced a 36-page report on annual reports of the Department and SOEs and this report provides a basis for our programme for 2006 and beyond. To get a better sense of both the nature of the Committee and the programme, it will be useful to refer to this report, which is to be published on 17 November 2005. The Committee would like to acknowledge its appreciation to Chris Thisani - Committee Secretary, Nzwaki Stemele - Assistant Committee Secretary and Desmoreen Carolus - ANC Researcher for their support.

3. Vision and mission of the committee:

To ensure that the Department and SOEs contribute effectively to economic growth, development and service deliver

• Eskom
• Transnet Limited
• Denel (Pty) Limited
• South African Forestry Company Limited
• Arrivia.korn
• Alexkor Limited

5. Number of meetings held and those cancelled:

19 held, 3 cancelled

• None

7. Papers (International Agreements, Protocols, Reports etc) referred to the Committee: indicate the following:-

• Memorandum on Vote No 9 - Public Enterprises, Main Estimates, 2005-2006 ATC 2/03, p 210
• Strategic Plan of the Department of Public Enterprises for 2005-2008 ATC 24/05, p 1020

• Report and Financial Statements of Transnet Limited for 2004-2005, including the Report of the Independent Auditors on the Financial Statements for 2004-2005. ATC 21/09, p 2083
• Report and Financial Statements of Arivia.kom for 2003-2004, including the Report of the Independent Auditors on the Financial Statements for 2003-2004 Letter from the Minister of Public Enterprises dated 3 February 2005 to the Speaker of the National Assembly. in terms of section 65(2)(a) of the PFMA, 1999 (Act No I of 1999), explaining the delay in the tabling of the Annual Report of Alexkor for 2004
• Report and Financial Statements of the South African Forestry Company Limited for 2003-2004, including the Report of the Independent Auditors on the Financial Statements for 2003-2004
• Report and Financial Statements of Escom Holdings Limited (Escom) for 2004-2005, including the Report of the Independent Auditors on the Financial Statements for 2004-2005

8. Oversight (Local) visits a) Alexkor Limited

• Objectives: To familiarize MPs with activities of Alexkor Ltd
• Dates: 17-19 January 2005
• Province: Northern Cape, Alexander Bay
• Report adopted on 16 March 2005 Report publication: ATC 16/03/05, p379

• Objectives: To familiarize MPs with activities of Transnet and Eskom
• Dates: 31 January-4 February 2005
• Province: Gauteng and KwaZulu-Natal
• Report adopted on: Waiting for draft from the Researcher
• Report publication:

• Objectives: To familiarize MPs with activities of Coega
• Dates: 9-10 June 2005
• Province: Eastern Cape
• Report adopted on: Waiting for draft from the Researcher
• Report publication: ATC ................5,p..............

9. International Visits:

• Objectives of each trip: To get a sense of how other countries with similar challenges to our own have managed the restructuring of their state entities.
• Dates: 6-19 August 2005
• Country, places visited: Chile (Santiago and Valparaiso) and Brazil (Sao Paolo and Brasilia)
• Report adopted: Resrecawing dfor on ..........2005
• Report publication: ATC..........., p

• Referral date: 2 March 2005
• Briefing by department 5 April 2005
• Public Hearings: Briefings from DPE and SOEs
• Report publication: 13 April 2005

11. Annual reports of the Executive

• Referral date: 30 September 2005
• Briefing by department & SOEs : 11,12, 18, 19 and 26 October 2005
• Public Hearings: None
• Report publication:

12. Other committee activities (briefings on other issues, workshops, conferences)

1. 26 Oct 05 - Briefing by Alexkor Ltd on their Annual Report
2. 19 Oct 05 - Briefing by Eskom on their Annual Report
3. 18 Oct 05 - Briefing by Denel on their Annual Report
4. 12 Oct 05 - Briefing by Transnet and SAA on their Annual Reports
5. 11 Oct 05 - Briefing by DPE on their Annual Report
6. 14 Sept 05 - Briefing by DPE on IPO for SOEs
7. 7 Sept 06 - Briefing by the Treasury on How to Analyse Annual Reports
8. 31 Aug 05 - Briefing by DPE on Broad Based BEE in the SOEs
9. 22 Jun 05 - Briefing By SAA on Investment Plans
10. 8 Jun 05 - Workshop on Restructuring of SOEs in Africa
11. 1 Jun 05- Briefing by DPE on Role of SOEs in Africa
12. 18 May 05 - Overview of Transnet Investment Plans
13. 6 Apr 05 - Discussion on DPE on their Strategic Plans and Budget
14. 5 Apr 05 - Briefing by DPE on their Strategic Plans and Budget
15. 16 Mar 05 - Briefing by DPE on Shareholder Models and Corporate Governance
16. 9 Mar 05 Briefing by DPE on Women Empowerment in SOEs
17. 23 Feb 05 - Report- back by Sub-committee on Alexkor Women Group
18. 16 Feb 05 - Adoption of Report on Annual Reports of DPE and SOEs and Committee Programme

13. Budget of the committee

• Budget allocated to the committee: R442 450.00

The Committee researcher, Ms Busisiwe Letompa, left employment without informing the Chairperson of PC Public Enterprises and providing the draft report on study tours in which she participated reports on Chile and Brazil. She left within ten days after we returned. She had, however, informed the Research Unit. They were under the impression that the Chairperson was aware of that and they have since apologised for the misunderstanding. They have agreed that:

• No researcher will be part of a study tour and leave within three months after the study tour.
• The Chairperson will be automatically informed timely in the case of a researcher resiqninq.

15. SUPPORT STAFF

Control Committee Secretary: Marc Philander/Albert MamaboL

Committee Assistant: Nzwaki Stemele

Secretary to Chairperson: Gadija Salie

Researcher (Research Unit): None

COMMITTEE SECRETARY DATE

CONTROL COMMITTEE SECRETARY DATE

COMMITTEE CHAIPERSON DATE