Orientation Workshop of the Portfolio Committee on

Transcript:Orientation Workshop of the Portfolio Committee on:
Orientation Workshop of the Portfolio Committee on Planning Monitoring and Evaluation on the New Shareholding Model and State-Owned Companies Date : 14 August 2024 1 2 Contents CONCEPT AND IMPLEMENTATION OF THE NEW SHAREHOLDER MODEL ESKOM : ROLE IN THE NATIONAL ENERGY SECTOR, CURRENT STATE OF OPERATIONAL AND FINANCIAL PERFORMANCE AND OUTLOOK TRANSNET : ROLE IN THE TRANSPORT AND LOGISTICS, CURRENT STATE OF OPERATIONAL AND FINANCIAL PERFORMANCE AND OUTLOOK SAA : ROLE IN THE AVIATION AND TOURISM INDUSTRY, CURRENT STATE OF OPERATIONS AND FINANCIAL PERFORMANCE AND OUTLOOK SAFCOL : MANDATE AND CURRENT STATE OF OPERATIONAL AND FINANCIAL PERFORMANCE AND OUTLOOK ALEXKOR : OVERVIEW OF ALEXKOR’S ROLE IN DIAMOND MINING, CURRENT OF OPERATIONAL AND FINANCIAL PERFORMANCE AND OUTLOOK DENEL : OVERVIEW OF DENEL’S MANDATE IN DEFENCE AND AEROSPACE SECTORS, CURRENT SATE OF OPERATIONAL AND FINANCIAL PERFORMANCE OUTLOOK 3 1. CONCEPT AND IMPLEMENTATION OF THE NEW SHAREHOLDER MODEL Introduction and Background State-Owned Enterprises (SOEs) play a critical role in key sectors of the South African economy. To ensure that the state can effectively enable economic and social development, it is essential that SOEs are strengthened. Bolstering these entities will not only enhance their operational efficiency but also ensure that they continue to meet the vital needs of our nation, driving sustainable economic growth and development. SOEs have been having operational, financial and governance challenges. State capture, corruption and other factors have exacerbated the severe deterioration of operational and financial situation of SOEs. The findings of the State Capture Commission illustrates this phenomenon. The absence of a separation of roles between policy, oversight, and regulatory functions, increased the challenges. The President appointed the Presidential SOE Council to advise on the reform, repositioning and revitalisation of SOEs. In the 2023 SONA, the President indicated that Government would implement the recommendation of PSEC to establish a state-owned holding company as part of a centralised model that will ensure effective oversight of SOEs. In the 2024 Opening of Parliament Address, the President indicated that we will complete the implementation of a new centralised ownership model for SOEs. This will improve accountability, transparency, governance and oversight, while reducing inefficiency and the potential for corruption. 4 Presidential Review Committee The Presidential Review Committee (PRC) on SOEs was established to examine the role of SOEs in a developmental state. The PRC Report made the following recommendations: Government should adopt a portfolio management approach to SOEs particularly in commercial entities