SATAWU's response to Minister Hogan's inference to privatise state owned enterprises

SATAWU finds it highly regrettable and is extremely angered that the newly appointed minister of public enterprises Barbara Hogan had exercised such poor political judgement with regard to her inferring the possible privatization of state-owned enterprises (SOEs). If these were her "privatized" thoughts she should have kept to herself due to her being an ANC deployee expected to advance the movement's policy as adopted in Polokwane in December 2007.

We cannot allow ministers and all other deployees to advance personal positions which are fundamentally contrary to the policies of the ANC and its Alliance partners. All ministers have to be audited on their political outputs based on ANC policy covering their departments.

Minister Hogan has no mandate to privatise any state-owned enterprises as ANC policy adopted in Polokwane called for state owned enterprises to be progressively positioned to contribute to the objectives of a caring, decisive and developmental state.

SATAWU have written to the minister on 15 May 2009 calling for urgent strategic engagement to discuss among other issues:

·         Building relations

·         Post SAA strike with regard to the appointment of a new CEO and Board, terminating the payment of retention premiums and a once-off payment to all employees of R10 000.00

·         New developmental role of state owned enterprises

Whilst we acknowledge the ministry's first telephonic response, we have been doing most of the follow-ups. But there has been no formal response from the minister's office one month later which is unacceptable under the circumstances as it could be indicative of an attitude we hope does not exist in the new administration, i.e. to marginalize SATAWU.

SATAWU believes that SOEs must remain publically owned and can be efficiently and viably managed if the following is done:

1.  Appoint Boards and CEOs who subscribe to a value system based on public service, competence, ethical management and compliance with good governance, i.e. to do away with private sector culture, conflict of interests, self enrichment through exorbitant packages and retention schemes as we witnessed in South African Airways

2. The department must work with SATAWU to eradicate corruption, fraud and nepotism as we did in SAA which led to the demise of Khaya Nqcula

3. Appoint SATAWU delegates onto the Boards to contribute ensure greater over sight with regard to compliance

4. The current financing model of SOEs must be reviewed in the context of its developmental role in regard to delivering infrastructure and creating decent work including response to the current global economic crisis.

SATAWU wishes to send a very strong warning to minister Hogan that she must respond urgently to the meeting requested failing which she will be paid a "mass-based visit" by members to defend the Polokwane platform on SOEs.

Statement issued by Randall Howard, SATAWU general secretary, June 15 2009

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