By Lehlohonolo Lehana.
Deputy President Shipokosa Paulus Mashatile has announced that the National State Enterprises Bill 2024, which lapsed in the sixth Parliament, has been revived by the seventh administration.
The Bill, among other things, aims to develop a centralised entity for the ownership of State-Owned Enterprises (SOEs).
Mashatile was back in the National Council of Provinces (NCOP) on Thursday, to field more oral questions on SOEs and the revival of the National State Enterprises Bill.
Many SOEs, including Eskom, South African Airways, the South African Post Office, and the SABC, are associated with mismanagement and corruption.
Billions have been stolen from these institutions, and many have become a feeding ground for politically connected individuals.
Unsurprisingly, all these institutions are in financial distress and rely on government funding to keep operating.
Mashatile said, one objective is to create a state asset management and a state-owned holding company to monitor work, including the performance of SOEs.
“In this regard, the National State Enterprises Bill which lapsed in the sixth Parliament, has now been revived in the seventh Parliament. Among other matters, the National State Enterprises Bill 2024 is aimed at developing a strategy for National State Enterprises to establish a state asset management, state-owned company to prove for appropriate and effective monitoring and reporting mechanisms over state enterprises and subsidiaries,” said Mashatile.
The Bill proposes that the company be led by an independent board of directors, selected by representatives from business and labour, along with two cabinet members, with the nomination process chaired by a retired judge.
Mashatile added that Minister in the presidency Maropene Ramokgopa will be responsible for the finalisation of the Bill, which will set out the exercise of shareholder responsibility for respective SOEs to be transferred in a phased manner into the envisaged national enterprise holding company.
Finance Minister Enoch Godongwana revealed that the cost of SOE bailouts had reached over R520 billion since the 2008/9 financial year.
This unnecessary spending means the country cut spending on other important areas, like health, education, and policing.
SOE bailouts have reached such concerning levels that it is influencing South Africa’s economy and worrying rating agencies.
Mashatile also said, the government sees the township economy as essential in growing the country’s overall economy.
He added that the government has made various interventions to strengthen and revitalize the township economy.
The Small Enterprise Finance Agency has R60 million available for small businesses. He said government does not only view the township economy as spaza shops.
“I’ve discussed with both ministers of small development to push provinces in that direction, more activities, real activities, not only spaza shops. When people think of township economy, they think spaza shops. We want to see real manufacturing that must take place in our townships,” said Mashatile.