Placing SOEs under one holding company not to be realised by sixth Parliament, says committe chair

CAPE TOWN - Another step towards the reform of state-owned entities (SOEs) by placing them under the control of a single holding company won’t be realised before the end of this political term.

This bill, along with another that will allow for the government to relinquish its majority shareholding of the national airline to a private entity has been put on hold by Parliament due to time constraints in completing the legislative process before the house rises ahead of the elections.

The two bills were tabled by the Public Enterprises Minister last month.

READ: Govt plans to table new bill that could move SAA sale closer to finalisation

Parliament’s public enterprises committee was due to discuss the repeal of the SAA (South African Airways) bill on Wednesday but was advised by the administration not to begin the process.

In 2020, President Cyril Ramaphosa announced that he was establishing a Presidential State-Owned Enterprises Council.

Legislation that would position all SOEs under a single holding company and do away with the need for a department to oversee them - was expected to follow.

But the chairman of the parliamentary committee Khaya Magaxa said this bill was erroneously placed before his committee.

A repeal bill which will pave the way for a majority stake in SAA to be sold, has also been put on ice.

"We won’t be able according to the officials to finish. Let’s target those we will be able to quickly finish in this term office, of which this one falls out."

Magaxa added the committee will instead prioritise its protracted investigation into complaints of irregularities involving the SAA transaction.

The airline is expected to appear before the committee before the end of the month to discuss its annual report.