Department of Public Enterprises
The public enterprises department has briefed the national council of provinces on measures taken to improve oversight over State-Owned Companies (SOC).
According to the department, the Presidential State-Owned Enterprises Council has outlined a clear set of reforms that will enable public companies to fulfil their mandate for growth and development.
The Council was set up in 2020 to support government to reposition state-owned enterprises (SOE) as effective instruments of economic transformation and development.
The Council’s mandate includes strengthening the framework governing SOEs including the introduction of an overarching Act governing SOEs and the determination of an appropriate Shareholder Ownership Model.
The department also confirmed that overarching legislation for SOCs will be tabled in cabinet this financial year with plans to table a bill in parliament the next financial year.
The department also pointed out that a centralised SOE model is being implemented this financial year.
The model will “ensure a standardised governance, financial management and operational performance framework for all SOEs”.
The department informed the select committee on public enterprises and communication that the mandates of all SOEs are being re-evaluated to ensure that they are responsive to South Africa’s needs and the implementation of the National Development Plan.
As regards the SOE Council, the department pointed out that lessons of how China’s SOEs are driving not only the Chinese economy but the global economy too can be taken on board by the Council in that the shareholder needs to have a clear long term vision and a strategy to ensure that a sound capital structure framework is created for the SOE that they own thereby ensuring that shareholder value is created.