Government plans to establish a centralised shareholding company to help it control its existing state-owned enterprises, says president Cyril Ramaphosa.<\/p>\n
Responding to questions in parliament on Thursday (17 March), Ramaphosa said he views state-owned enterprises are critical drivers of inclusive economic growth and social development in the country.<\/p>\n
“However, the reports released by the commission of inquiry into state capture demonstrate the extent of the repurposing, damage and theft caused by state capture, he said<\/p>\n
“We are therefore working to reposition strategic SOEs to fulfil their vital economic and social mandates.”<\/p>\n
International good practise suggests that a centralised shareholder model \u2013 along with a central authority to house strategic state-owned companies \u2013 is the best way to ensure effective oversight, the president said.<\/p>\n
Ramaphosa said a centralised shareholder management model is likely to entail the following:<\/p>\n
Ramaphosa said the government is currently reviewing state ownership policy in terms of which SOEs need to be owned by the state as well as the extent thereof.<\/p>\n
“The presidential SOE Council is evaluating the financial and operational status of the major SOEs and reviewing the turnaround plans for each SOE in crisis.<\/p>\n
“The journey that we have embarked on will transform the manner in which SOEs are governed and managed for the benefit of the nation as a whole. This is a transformation that is long overdue.”<\/p>\n