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Major shake-up for state entities

A report into the state of parastatals was tabled in Parliament on Tuesday.

The Minister for Performance Monitoring, Evaluation & Administration, Collins Chabane addressed the media on the outcomes of the Cabinet meeting held on Tuesday, 30 April 2013. Picture: GCIS.

CAPE TOWN - A major shake-up is on the cards for the country's state owned entities.

The report of a top level committee on how to improve policy and strengthen the role of parastatals in boosting the economy was released on Tuesday in Parliament.

The Presidential Review Committee on state owned entities was announced by President Jacob Zuma three years ago.

Cabinet accepted its report which was released by Minister in the Presidency, Collins Chabane.

Key recommendations include the need for long term overarching strategy governing state owned entities and new legislation to enforce this.

Some of the more than 700 state owned entities may be disestablished and absorbed by line departments while salaries of executives will also be looked at.

However, Chabane stressed that reforming state owned entities would take time.

"This is a reform process which cannot be carried out overnight."

An inter-ministerial committee will now consider the report and make specific recommendations to cabinet for approval.

Earlier in May, Public Enterprises Minister Malusi Gigaba said the country's parastatals deserved government's continued support.

Gigaba said state owned enterprises were showing a good return on investment.

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