Mr Chairperson, Minister, Deputy Minister, officials of the department, the senior management of the state-owned enterprises, SOEs, comrades and colleagues, the Roman philosopher Seneca once said, "It is not because things are difficult that we do not dare, it is because we do not dare that they are difficult."
During the past 18 months we have witnessed the worst global economic and financial crisis in decades. In most countries the effects were devastating. In South Africa we did not escape this crisis, but due to solid political leadership and a stable political environment, backed by a sound economic system and good financial and monetary policies, we are managing this crisis better than most other countries.
We are still experiencing difficult times with major challenges, but if we do not dare, things will stay difficult and will become even more so. As leaders, we have to dare in a responsible manner and in such a way that it will benefit the majority of our people.
The stakeholders in public enterprises, including the department, all nine state-owned entities and our portfolio committee, must now dare to make things easier, not more difficult. One such area is good corporate governance of state-owned entities, and this is the first issue I want to address in the time allocated to me.
There are a number of excellent Acts and documents linked to corporate governance in South Africa which are also applicable to public enterprises. The three most important ones are the Public Finance Management Act, PFMA, of 1999, the Companies Act of 2008, which will come into effect later this year, and the corporate governance standards of the King III Report.
In the consideration of governance arrangements and the state-owned enterprises, it may be worth considering the relationship between the provisions of the PFMA, the Companies Act and the King III Report. Questions will need to be asked, for example: how are SOEs going to be affected by these Acts and corporate governance principles; and are these Acts and the King III Report compliant with one another with reference to SOEs?
We must ask ourselves whether the time has not arrived to develop a set of consolidated guidelines on the corporate governance of South African state- owned enterprises based on best practice and practical experience. Such guidelines were produced by the Organisation for Economic Co-operation and Development, OECD, and published in 2005, and these will assist the government in improving the performance of SOEs. The decision to apply the guidelines to the governance of a particular SOE should be made on a pragmatic basis, allowing for the differences in size, structure and mandate.
Challenges will be to structure a complex web of accountability in order to ensure efficient decisions and good corporate governance, and to clarify what role SOEs will play within the context of a developmental state. The hon Hajaig has already referred to that. SOE infrastructure projects, for instance, are critical if economic growth is to be sustained.
It is not because things are difficult that we do not dare, it is because we do not dare that they are difficult!
A second aspect that I want to address is that of certain choices that have to be made in challenging times. During turbulent times of financial and economic difficulties, entities operating in both the private and public sectors experience the opportunity to reconsider what is a "nice to have" and what is a "need to have". For state-owned enterprises, this choice also arises.
Tough questions need to be asked regarding, for instance, the ratcheting up of salaries and bonuses, the spending on frills, the traveling in luxury and the spending of more on marketing the enterprise than on fixing the enterprise. To quote from the Budget Speech for 2010-11 by the Minister of Finance:
In this regard, we have to work together to eliminate ineffective programmes and to improve value for money.
Boards of SOEs and CEOs of state-owned enterprises have a particularly important task to fulfil in this regard, and they need to set an example. As the Portfolio Committee on Public Enterprises, we should monitor the SOEs for the progress they make in this regard.
Lastly, I want to welcome the appointment of the interministerial committee headed by Ministers Hogan and Gordhan, as well as the independent panel of experts appointed by the President, to look into various important aspects relating to SOEs. We are looking forward to their recommendations once the timelines and their reports have been finalised.
I am not going to finish my speech, because I want to respond to some of the comments made by members in this House.
Kom ons praat sommer plat Afrikaans. Eerstens, agb mnr Van Dyk, jy het vandag baie skerp en ongelukkig miskien ongegronde woorde in hierdie Huis teenoor 'n organisasie soos Eskom gebruik. Ek gaan nie daardie woorde herhaal nie, want ek dink ons moet kyk na die woorde wat mnr Mangena gebruik het, en ek wil met hom saamstem. Dit is eerder 'n tyd om mense te komplimenteer wat baie harde werk in belang van Suid-Afrika doen, eerder as om hierdie woorde te gebruik wat die agb lid van die DA vanmiddag teenoor Eskom gebruik het.
Hoekom word daar nie hieroor gepraat wanneer hierdie mense voor ons in 'n komitee sit nie? Ons kyk mekaar dan in die o; praat daar man teenoor man met mekaar oor wat die fout is. Eerder dit, as om dit hier in die openbaar te kom ophaal. Toe ons by Medupi was, het hulle aan ons verduidelik dat die eerste module in 2012 gaan staan. Dit was duidelik. Om nou na die tyd te kom en s, nee, dis 'n vertraging en dis nie waar nie, is om die publiek te mislei. En ons kan nie bekostig dat ons openbare uitsprake maak wat nie op feite gegrond is nie. (Translation of Afrikaans paragraphs follows.)
[Let us speak plain Afrikaans. Firstly, hon Mr Van Dyk, you have been very cynical and at times made perhaps unfounded allegations in this House today with regard to an organisation such as Eskom. I am not going to repeat those words, because I think we ought to look at the words Mr Mangena used, and I want to agree with him. This is rather a time to compliment people who are working very hard in the interest of South Africa, instead of using those words that the hon member of the DA used today with regard to Eskom.
Why not mention these concerns when these people appear before us at a committee meeting? Then we can look each other in the eye and speak man to man about the mistakes that were made. That is how it should happen, instead of raking it up in public.
When we were at Medupi, they told us that the first module would be ready by 2012. It was clearly stated. But, to come afterwards and say it is impossible, this is a delay and a lie, is in fact misleading the public. We cannot afford to make public statements that are not based on facts.] Then I want to address Mr Nhanha. Mr Nhanha, I have news for you. I think you are flogging a dead horse in your party. You are using the words "corrupt officials in Transnet and Denel" here. You talk about bigwigs. It is good to greet your family on television! [Laughter.]
Do not come and bash officials who are hard-working and who are trying their very best to do that. You talk about bigwigs? I think you should look at the bigwigs fighting for positions in your own party at your conference that is coming up. Then we will see who is corrupt and who the bigwigs are!
So, let us not use words and make sweeping statements about hard-working officials who are trying their best to achieve some development for South Africa. I agree with you about the PBMR, that the core of the expertise needs to be kept in South Africa. We cannot afford to lose them.
Mr Ambrosini, it is not an internal committee appointed by the President. It is an independent panel of experts. Perhaps you know the names of this panel of experts. I have not seen the list. However, let us not talk about the internal committee appointed by the President - it is not based on facts. The President said it is an international panel of experts from all over the world, so let us not make a judgement before they have started their work.