Mr Speaker, as members would recall, the Medium-Term Strategic Framework which we released last year states that we should integrate state-owned enterprises into our planning processes and improve the monitoring and evaluation of their performance.
With that in mind, we have decided to set up a two-pronged review of state- owned enterprises, SOEs, which 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 first part of the review will be internally undertaken in government under the leadership and oversight of the Interministerial Committee, which is co-chaired by Ministers Barbara Hogan and Pravin Gordhan.
Broadly, this part of the review should make recommendations on a number of issues which include the following: One, how government can strengthen alignment between its development objectives and the strategic role to be played by SOEs in the economy in the period ahead; two, co-ordination of infrastructure investment by SOEs to ensure that the country has the capacity ahead of demand, ensuring that it is co-ordinated with the roll- out of the required infrastructure; three, how to ensure an effective and transparent regulatory process for SOEs; four, strategies for utilising SOE investment as a means of localisation and industrial development; and lastly, the revival of the role of state-owned enterprises in skills development and training.
The second part of the process will be undertaken by an independent panel of experts assisting the Presidency and the interministerial task team. The terms of reference are still being finalised. It is, however, envisaged that this process will, amongst other issues, focus on reviewing current governance arrangements relating to SOEs in South Africa; undertaking an audit of current practices regarding planning and decision-making within SOEs, as well as between SOEs and government; and undertaking a critical assessment of the role SOEs have played in supporting government's development objectives.
The two complementary streams of work will be overseen and co-ordinated by the Presidency. Once completed, the work will be submitted to the Presidency for synthesis into a final report that will be presented to Cabinet before its recommendations are adopted and implemented as government policy.
In answering some of the specific questions raised by the hon Leader of the Opposition I would say that, one, executives at state-owned enterprises are appointed on merit; two, we have not yet considered the issue of the tabling of the review in Parliament, but will do so once our initial processes have been completed; and lastly, the main thrust of the state of the nation address was to communicate the new outcomes approach and the new way of doing things in government in order to speed up service delivery and change the way government works. We did indicate as well that most of the details of the work would be in departmental Budget Votes. I thank you.