DA concerned centralising of SOEs into Presidency will give it too much power

The Department of Public Enterprises said that a centralised model was being implemented this financial year, which would ensure standardised governance, financial management and operational performance for all SOEs.

FILE: New Minister in the Presidency Mondli Gungubele and President Cyril Ramaphosa at the swearing-in ceremony at the Union Buildings in Pretoria on 6 August 2021. Picture: GCIS

CAPE TOWN - The centralising of state-owned entities (SOEs) into the Presidency has been in the spotlight on Wednesday, with the Democratic Alliance (DA) saying this will create what it calls a "super Presidency."

The Public Enterprises Department on Wednesday briefed the National Council of Province (NCOP)'s select committee on Public Enterprises and Communications about measures to improve SOEs.

The proposed shareholding and governance structure follows the collapse of entities like SAA.

The Department of Public Enterprises said that a centralised model was being implemented this financial year, which would ensure standardised governance, financial management and operational performance for all SOEs.

Some of these will report to the Presidential SOE council that will be chaired by the president, a move that the DA’s Mlindi Nhanha said would give that office too much power.

“The Presidency is intending to have the operations of SOEs under its wings. Isn’t this further creating a super presidency in our country?”

Director-General Kgathatso Tlhakudi said that they would consolidate non-commercial SOEs into one entity.

“So, you’re not talking about really the whole portfolio. Though with the point that we would also like to make with regards to the rest of the non-commercial, there’s a lot of consolidation that needs to be done there.”

Download the Eyewitness News app to your iOS or Android device.