adminThe debate around whether each state-owned enterprise (SOE) should report to its relevant state department and minister or be housed in a new holding company seems irrelevant when considering their bad performance and governance failures.
Maybe the focus should be to hold the management responsible for their failures instead of moving the chairs around on a sinking ship.
President Cyril Ramaphosa mooted a new holding company for all the SOEs, effectively creating a new legal entity that would report directly to the president’s office.
This would be in contrast with existing policy, which places the responsibility of oversight of these companies with different state departments.
The reorganisation came about with the demise of the Department of Public Enterprises, a move announced by President Ramaphosa in July.
Eskom, Transnet, South African Airways (SAA), SA Express (liquidated in 2022), arms manufacturer Denel, Alexkor diamond mine, and forestry company Safcol reported to the department.
Last week, President Ramaphosa issued a proclamation to transfer Eskom to Minister of Electricity and Energy Kgosientsho Ramokgopa.
Transnet and SAA, as well as the remains of SA Express, were moved to the Department of Transport, and now report to Transport Minister Barbara Creecy.
Alexkor will now report to Minister of Mineral Resources and Energy Gwede Mantashe, Denel to Minister of Defence Angie Motshekga, and Safcol to Minister of Forestry, Fisheries and the Environment Dion George. — Moneyweb
Online Reporter