MPs question objective of creating 'super state-owned company' to oversee SOEs
The department said the company will be 100% state-owned and the bill separates state ownership function from policy-making and regulatory functions.
CAPE TOWN - Members of Parliament (MPs) have questioned the objective of creating what some have labelled a “super state-owned company" that will oversee and own the country’s state-owned entities (SOEs).
They say they’re not convinced having all SOEs under the control of one “mammoth” company will solve problems plaguing companies like South African Airways and Transnet.
On Wednesday, MPs in the portfolio committee on planning, monitoring and evaluation received a briefing on the National State Enterprises Bill which will centralise shareholding of the country’s major SOEs.
This was part of a workshop for MPs to help them understand the SOE models and their financial state.
The National Treasury and the Department of Planning, Monitoring and Evaluation took MPs through the various SOEs as well as the proposed National State Enterprises Bill which will see all state entities falling under one company.
But some like the MK Party’s Andile Mngxitama say the bill won’t fix the already struggling companies.
"How is this mammoth company going to solve the problems that are so endemic in these state-owned entities? I'm not sure this bill is going to address that."
The Democratic Alliance’s Kate Christie questioned the appointment of the board.
"Are we going to be ensuring that the board of the centralised holding company, the members of the board are appointed based on merit?"
The department said the company will be 100% state-owned and the bill separates state ownership function from policy-making and regulatory functions.