Akani Nkuna
THE DA – a key partner of the ANC in the GNU – has welcomed President Cyril Ramaphosa’s realignment of State-Owned Entities (SOE’s) which previously fell under the Department of Public Enterprises and emphasised the need for accountability and improvement in oversight.
Darren Bergman, DA spokesperson, said on Tuesday that as the Department of Public Enterprise is done away with, future attempts to centralise SOEs will not only be cumbersome but very irresponsible.
The statements follow pronouncements by ANC acting national spokesperson, Zuku Godlimpi who said on Monday Ramaphosa’s action was to reposition the SOE’s under appropriate ministries, crucial and in line with party resolutions from the 54th and 55th National Conferences.
The realignment is also entrusted to encourage accountability and confers greater responsibility towards a single individual to whom its management is entrusted, he said.
However, political commentators and political parties have received the news of the realignment of SOE with contrasting views.
Dr Dale McKinley, Political Analyst, during an interview with SAFM radio, welcomed this action by the President and described it as a sound and good looking plan through which the efficiency of SOEs can be maximised.
But, he cautioned against settling political scores while seeking to score political points at the cost of SOEs.
McKinley expressed concerns that since Government of National Unity (GNU) is the order of the day, political roles of ministers to whom a department is entrusted will influence the efficiency of SOEs generally.
“When all these Departments fell under a single portfolio, there was no regulatory authority that could handle them when there was misuse of resources,” added McKinley.
President Ramaphosa has signed proclamations which, in terms of Section 97 of the Constitution of the Republic of South Africa of 1996, transfer the administration, powers and functions entrusted by the specified legislation as follows:
– Alexkor: Minister of Mineral and Petroleum Resources
– Denel: Minister of Defence and Military Veterans
– Eskom: Minister of Electricity and Energy
– Safcol: Minister of Forestry, Fisheries and the Environment
– South African Airways: Minister of Transport
– South African Express: Minister of Transport
– Transnet: Minister of Transport
In addition, certain sections of the Overvaal Resorts Limited Act of 1993 and Overvaal Resorts Limited Act Repeal Act of 2019 are vested with the Minister of Water and Sanitation.
The President has signed a proclamation appointing the Minister in the Presidency responsible for Planning, Monitoring and Evaluation as the executive authority of the Department of Public Enterprises (DPE), which will continue to exist and operate until the human and financial resources are transferred appropriately. This appointment empowers the Minister to exercise with respect to DPE all relevant powers and functions under the Public Service Act of 1994 and the Public Finance Management Act of 1999.
The Minister in the Presidency responsible for Planning, Monitoring and Evaluation has also been assigned the responsibility to finalise the National State Enterprise Bill, which will set out the exercise of shareholder responsibility for respective SOEs which will be transferred in a phased manner into the envisaged national enterprise holding company.
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