President Cyril Ramaphosa has implemented the long-awaited ANC resolution for all state-owned entities (SOEs) housed at the now dissolved department of public enterprises to be moved to the line ministries.
The Presidency announced on Monday Ramaphosa has signed proclamations for the transfer of the administration, powers and functions of SOEs to their respective ministries.
The decision means;
- Alexkor [to the] department of mineral and petroleum resources
- Denel — department of defence and military veterans
- Eskom — department of electricity and energy
- Safcol — department of forestry, fisheries and the environment
- SAA and South African Express — department of transport; and
- Transnet — department of transport
The Presidency said certain sections of the Overvaal Resorts Limited Act and Overvaal Resorts Limited Act Repeal Act are now vested with the minister of water and sanitation.
“The president has signed a proclamation appointing the minister in the presidency responsible for planning, monitoring and evaluation as the executive authority of the department of public enterprises (DPE), which will continue to exist and operate until the human and financial resources are transferred appropriately.
“This appointment empowers the minister to exercise power with respect to DPE all relevant powers and functions under the Public Service Act and the Public Finance Management Act.”
It added that the minister in the presidency has been assigned the responsibility to finalise the National State Enterprise Bill, which will set out the exercise of shareholder responsibility for respective SOEs which will be transferred in a phased manner into the envisaged national enterprise holding company.
The decision by the ANC to move SOEs to their line ministries was made during its 2022 December conference.
The National State Enterprises Bill was first proposed by the then DPE minister Pravin Gordhan marking a significant departure from the ANC resolution.
Under the draft law, the president will be the sole representative of the holding company but may transfer any power or function referred to in the legislation to another member of the cabinet. The holding company will act through its board, appointed by the president.
It stated that only profitable SOEs will be transferred to the holding company as others would have to be restructured or consolidated.
SOEs were identified by the ANC as an instrument to advance economic transformation.
However, it was the then governing party which was held to be at the centre of their collapse.
Incompetence and corruption pushed entities such as SAA and the SABC to financial collapse.
In response to DA question to parliament in May, Gordhan said government spent R283bn bailing out Eskom, Denel, Transnet, and SAA. In five years, only Safcol declared a R1m dividend to the government shareholder.
TimesLIVE
Ramaphosa moves SOEs to line ministries, implementing ANC resolution
Image: Phando Jikelo, Parliament RSA
President Cyril Ramaphosa has implemented the long-awaited ANC resolution for all state-owned entities (SOEs) housed at the now dissolved department of public enterprises to be moved to the line ministries.
The Presidency announced on Monday Ramaphosa has signed proclamations for the transfer of the administration, powers and functions of SOEs to their respective ministries.
The decision means;
The Presidency said certain sections of the Overvaal Resorts Limited Act and Overvaal Resorts Limited Act Repeal Act are now vested with the minister of water and sanitation.
“The president has signed a proclamation appointing the minister in the presidency responsible for planning, monitoring and evaluation as the executive authority of the department of public enterprises (DPE), which will continue to exist and operate until the human and financial resources are transferred appropriately.
“This appointment empowers the minister to exercise power with respect to DPE all relevant powers and functions under the Public Service Act and the Public Finance Management Act.”
It added that the minister in the presidency has been assigned the responsibility to finalise the National State Enterprise Bill, which will set out the exercise of shareholder responsibility for respective SOEs which will be transferred in a phased manner into the envisaged national enterprise holding company.
The decision by the ANC to move SOEs to their line ministries was made during its 2022 December conference.
The National State Enterprises Bill was first proposed by the then DPE minister Pravin Gordhan marking a significant departure from the ANC resolution.
Under the draft law, the president will be the sole representative of the holding company but may transfer any power or function referred to in the legislation to another member of the cabinet. The holding company will act through its board, appointed by the president.
It stated that only profitable SOEs will be transferred to the holding company as others would have to be restructured or consolidated.
SOEs were identified by the ANC as an instrument to advance economic transformation.
However, it was the then governing party which was held to be at the centre of their collapse.
Incompetence and corruption pushed entities such as SAA and the SABC to financial collapse.
In response to DA question to parliament in May, Gordhan said government spent R283bn bailing out Eskom, Denel, Transnet, and SAA. In five years, only Safcol declared a R1m dividend to the government shareholder.
TimesLIVE
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