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Green Paper on SOE Shareholder Management on the Cards

July 24, 2019

Department of Public Enterprises

24 July 2019

A Green Paper setting out policy positions for the shareholder management of State-Owned Enterprises (SOE) will be drafted during the current financial year.

The public enterprises department confirmed this in a briefing to the select committee on public enterprises and communication in parliament on its 2019 Annual Performance Plan.

According to the department, the Green Paper is the first step on a process to develop a SOE Bill.

Comments garnered during the consultation phase on the Green Paper will be incorporated into a White Paper.

Proposed legislation will then flow from the White Paper.

The plan is to develop the White Paper and the draft bill during the 2020/21 financial year.

The department also confirmed that a coherent working arrangement was in place with the trade and industry department, Council for Scientific and Industrial Research, national treasury and the small business development department to develop strategies to advance localization in the state-owned company (SOC) environment.

A draft communication strategy for SOCs has been developed and is currently under review.

Meanwhile, in response to the briefing, the committee, in a statement, welcomed the proposed Government Shareholder Management Bill and directed the department to fast-track the bill.

According to the statement, the public enterprises minister, Pravin Gordhan, informed the committee that the “department is closely monitoring SOEs’ financial and operational performance through weekly and monthly monitoring. The recovery of stolen money is in process, he said, as law-enforcement agencies are pursuing cases against those implicated”.