Ramaphosa announces takeover of SOEs by holding company for effective monitoring
President Cyril Ramaphosa has done away with the Department of Public Enterprises in the seventh administration in preparation for the management of SOEs to be placed under a holding company.
President Cyril Ramaphosa replies to the debate on the Opening of Parliament address, 22 June 2024. Picture: GCIS
CAPE TOWN - President Cyril Ramaphosa says a new plan for a state-owned enterprises (SOEs) holding company will ensure parastatals are more effectively monitored.
He’s done away with the Department of Public Enterprises in the seventh administration in preparation for the management of SOEs to be placed under a holding company.
From now on, SOEs will report directly to line ministries in terms of policy and regulation.
Responding to the debate on the budget of The Presidency on Wednesday, Ramaphosa said it was unacceptable that some SOEs got away with not tabling financial reports for several years.
In January, the then-public enterprises minister tabled the National State Enterprises Bill in Parliament.
It lapsed at the end of the sixth administration in May, without being processed.
Ramaphosa said placing SOEs within a holding company would be key to their reform.
“To coordinate, to ensure that there’s line of sight, so as to make sure that we are able to see at one glance, on one radar screen, precisely how our SOEs are functioning.”
Ramaphosa said this reform would include standardising the appointment and remuneration of boards and executives.
It now falls to the Department of Planning, Monitoring and Evaluation to establish the holding company, which Ramaphosa said was in line with international best practice.