With government moving full steam ahead with plans to establish a holding company for state-owned enterprises (SOEs), the Department of Planning, Monitoring and Evaluation has been assigned the responsibility to finalise the processes.
‘The SOEs that were previously under the stewardship of the Department of Public Enterprises will report to their respective line departments in terms of policy and regulatory matters,’ President Cyril Ramaphosa said on Wednesday in Parliament.
Responding to the debate on the Presidency Budget Vote speech, the President reiterated that government is introducing legislation to establish a state-owned holding company to oversee and coordinate key strategic SOEs.
‘The legislation will assign the functions of the holding company, which will cover issues of governance, financial management, remuneration standards and similar matters.
‘This is in line with global best practice and is the approach taken by many countries with SOEs that successfully fulfil a social and economic dev
elopment mandate.
‘While some in this House might be dismissive of the work being coordinated in the Presidency, let us not lose sight of what these measures mean for the everyday lives of South African citizens. They mean more affordable and reliable electricity, cleaner water, efficient trains and lower data costs,’ President Ramaphosa said.
Meanwhile, turning to other issues, the President said with just a small team of dedicated officials in the Presidency and National Treasury working closely with a wide range of government departments and entities, the President said the reforms implemented through Operation Vulindlela have had a measurable impact on growth and investment.
‘These structural reforms are in the most strategic and critical sectors of our economy, as I indicated yesterday. They are in energy, in logistics, in telecommunications, in visa reform and in water.
‘The reforms that are underway in the water sector – like reinstituting water quality monitoring systems, developing a raw water pr
icing strategy, and establishing a Water Partnerships Office to develop water infrastructure – have direct and material benefits for service delivery,’ the President said.
Improved water infrastructure ensures more reliable and sustainable water supply while water quality management systems mean cleaner water and a reduced health risk.
‘The ultimate beneficiary is the people of South Africa, and strengthening and enhancing the economy of our country,’ the President said.
He said the reforms being implemented are laying a robust foundation for sustained economic and social progress.
‘We have noted calls for programmes to involve young unemployed people in various forms of work, training and development. Contrary to some suggestions in the debate, we do have such programmes.
‘These include the successful National Rural Youth Service Corps programme – known as NARYSEC – which provides opportunities to unemployed rural youth. We also spoke yesterday about other public and social employment programmes that ha
ve a large number of young participants.
‘The challenge we have now is to scale up these programmes within available resources to ensure that they have a greater reach and impact,’ the President said.
Size of the Executive
On the matter of the size of the Executive, the President said at this moment in South Africa’s history, the country faces complex and urgent challenges, which require strong coordination from the centre of government.
‘While we continue to seek ways to use the resources of the state optimally, we have also had to ensure that we achieve inclusivity and balance. We believe that this is important for ensuring governance outcomes that serve the interests of all South Africans.
‘Most importantly, we will ensure that the machinery of government works efficiently, and that it is used to advance the people’s interests and improve their lives.
‘We will ensure that we reduce waste, rationalise and restructure our state-owned entities, and continue to direct the majority of our budget towards s
ustaining the social wage and investing in infrastructure,’ the President said.
He said now more than ever, government must demonstrate what the people of South Africa can achieve when they work together.
‘We must seize the opportunity that this Government of National Unity presents to restore these people’s trust in our democracy, and to realise the promise of dignity and equality that is contained in our Constitution.
‘Five years from now, let us be able to say that we have made a difference in the lives of our people. Let us ensure that we take our beautiful country closer to the society of which we have all dreamed. And let us make sure that we leave no-one behind,’ the President said.
Source: South African Government News Agency