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Fin24 reports that Public Enterprises Minister Pravin Gordhan on Friday announced a shake-up of state-owned companies (SOEs) that will set them on a stronger commercial footing by creating a "centralised shareholder model" under a state-owned holding company.
The holding company will embrace government’s commercial entities that engage in business activities, such as Eskom and Transnet. The Presidential SOE Council has recommended the proposed model. Gordhan explained: "This [will] separate the state’s ownership functions from its policy and regulatory functions, minimise the scope for political interference, introduce greater professionalism, and manage state assets in a way that protects shareholder value." He said much progress had already been made and that a Shareholder Bill would be introduced after approval by Cabinet. The necessary documents to establish the holding company had been drawn up and "the necessary consultation would soon be concluded." Gordhan added that work had also been done on the consolidation of state-owned companies, of which there are more than 700, and to assist those that found themselves in crisis. Responding to criticism that he had subverted processes in the selection and negotiation of a partner for SA Airways (SAA), Gordhan said he wanted to assure the public that "there has been absolute transparency and all necessary legal processes were complied with, notwithstanding the regrettable efforts by many to sabotage and undermine the process". The National Treasury has made clear that it was not consulted in the choice of SAA’s strategic partner.
- Read the full original of the report in the above regard by Carol Paton at Fin24 (subscriber access only)
- Read too, Opposition parties gear up to take Gordhan on in SAA deal, at Sunday Independent
Get other news reports at the SA Labour News home page