Statement on the SOEs reviews, June 21 2010
Minister in The Presidency, Collins Chabane has noted media reports on the review of the State Owned Enterprises (SOEs) and wish to put the following on the record.
President Jacob Zuma during oral reply to questions in Parliament said "I have decided to set up a two-pronged review of SOEs that will culminate in a united government position on the role of SOEs in supporting government's developmental agenda in the period ahead. The two processes are complementary and will culminate in a single synthesised report for consideration and decision-making by Cabinet."
The Medium Term Strategic Framework (MTSF) for 2009-2014 states the need to review the State Owned Enterprises as part of the economic transformation agenda. The MTSF also states the need for government to integrate SOEs into the planning processes and improve the monitoring and evaluation of their performance.
To take the process forward, Cabinet established the Inter-Ministerial Committee co-chaired by Ministers Barbara Hogan and Pravin Gordhan to conduct an internal government review of SOEs and among others determine how government can strengthen alignment between its development objectives and the strategic role to be played by SOEs in the economy.
The President further appointed a Presidential SOE Review Committee chaired by Ms Mangwashi Phiyega to among others review the current governance arrangements relating to SOEs and undertake an audit of current practices regarding planning and decision making with SOEs as well as between SOEs and government. The committee will also undertake an assessment of the role SOEs have played in supporting government's development objectives and make recommendations on how this can be improved.
The two complementary streams of work will be overseen and coordinated by the Presidency and the two reports will be synthesised into a final report that will serve in Cabinet before recommendations are adopted and implemented as government policy.
Statement issued by The Presidency, June 21 2010
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