Chairperson and hon members, it is my privilege to introduce this report to the House on behalf of the Portfolio Committee on Public Enterprises. I am happy to say that the Department of Public Enterprises is one of only three national departments that have consistently received an unqualified audit opinion from the Auditor-General for a number of years in succession, and has again done so.
For the first six months of the current financial year, from 1 April to 30 September this year, the department managed to sustain its excellent financial management performance. This is a great achievement for the department - an indication of good managerial skills on the part of management and also a reflection of strong financial management systems and internal controls that are effective and efficient.
The portfolio committee urged the department to ensure that it sustains this performance and suggested, in line with the request from the office of the Auditor-General, that the department should share these successful strategies with other government departments.
The Department of Public Enterprises acts as a shareholder of very important state-owned companies, including Eskom, Transnet, SA Airways, SA Express, Denel, Safcol, Broadband Infraco and Alexkor. These state-owned enterprises, SOEs, fulfil an important role in contributing to the developmental state, including developing skills and creating jobs.
The portfolio committee resolved to undertake a visit to the head office of the Department of Public Enterprises to familiarise itself with the operations and oversight mechanisms that the department has put in place to ensure shareholder management responsibility over state-owned companies. As a matter of fact, we will visit before the end of the fourth term.
In conclusion, the following recommendations have been made: Firstly, the Standing Committee on Public Accounts should consider paying more attention to fruitless and wasteful expenditure reported in the annual reports of state-owned companies, especially the irregular expenditure of R8,3 billion and fruitless and wasteful expenditure of R36 million reported at Transnet.
Secondly, the Department of Public Enterprises should finalise the report, with recommendations, on executive remuneration in state-owned companies.
Thirdly, the department should provide the portfolio committee with shareholder compacts of state-owned companies, to enhance the oversight work of the portfolio committee.
I present the Budgetary Review and the Recommendation Report of the Portfolio Committee on Public Enterprises to the National Assembly for adoption. I thank you. [Applause.]
There was no debate.
The Chief Whip of the Majority Party: Hon Chairperson, I move:
That the Report be adopted.
Motion agreed to.
Report accordingly adopted.