By Lungile Ntimba
The Democratic Alliance has again called for the National State Enterprises Bill to be scrapped, saying the National Economic Development and Labour Council (Nedlac) has failed to resolve disagreements between business, labour and government regarding its viability.
DA planning, monitoring and evaluation spokesperson Darren Bergman said this development reaffirmed its longstanding position that the Bill was unsuitable for enactment.
“Nedlac’s failure to reach consensus on the Bill provides a clear signal that South Africa, across all economic role players, will not allow the creation of an ineffective holding company for state-owned enterprises that wastes taxpayer money and hinders growth,” Bergman said in a statement.
The Bill, which was introduced by Electricity and Energy Minister Kgosientsho Ramokgopa, proposes the creation of a State Asset Management SOE to oversee all other SOEs, with the government as the sole shareholder.
The DA has warned that such a structure would open the door to large-scale corruption and add an unnecessary layer of national mismanagement.
According to Section 5(1)(d) of the Nedlac Act, the council is mandated to consider and reach consensus on all legislative changes related to social, economic and labour policy, and advise Parliament.
The DA argues that the council’s inability to fulfil this mandate on the Bill should send a clear message to lawmakers.
“If Nedlac cannot support the State Enterprises Bill, neither should Parliament. It is time for it to be scrapped,” Bergman said.
He said it would be incomprehensible for Parliament to approve a Bill that would increase inefficiency at the expense of economic growth and job creation.
The Portfolio Committee on Planning, Monitoring and Evaluation was briefed by Nedlac on Thursday.
The committee said it would invite other stakeholders to make submissions on the Bill as part of the extensive consultation process and public participation.
Committee chairperson Teliswa Mgweba said she was hopeful that the Bill would significantly transform the governance, ownership and the architecture of state-owned companies.
She believes the proposed legislation will also strengthen the oversight mechanism, accountability and performance monitoring to promote a transparent and inclusive legislative process.
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