DEPARTMENT: PUBLIC ENTERPRISES
REPUBLIC OF SOUTH AFRICA
QUESTION FOR WRITTEN REPLY
QUESTION FOR WRITTEN REPLY
QUESTION NO.: 385
DATE OF PUBLICATION: 22 October 2010
385. Mr D B Feldman (COPE-Gauteng) to ask the Minister of Public
Enterprises:
(1) Whether the role of the state-owned enterprises (SOEs) is adequately
defined in the Governmentâs National Economic Strategy as stated in his
departmentâs Strategic Plan for 2009-2012 which assists his department to
systematically justify the allocation of capital to the SOEs; if not, why
not; if so, on what basis is the capital being allocated to the SOEs at
present;
(2) whether any processes are being implemented to ensure that the role
of the SOEs is defined in the Governmentâs National Economic Strategy; if
not, why not; if so, what are the timeframes that are attached to such a
process? CW491E
REPLY
1) The conceptualisation of the role of State Owned Enterprises (SOE) in
the South African economy has evolved post the democratic transition
in 1994. Up to the end of 2003, the Department of Public Enterprises
was focused on the implementation of restructuring and privatisation
initiatives. From 2004, the DPE strategy was changed to direct the
SOE in its portfolio to focus on the consolidation of core services
that supported a strategic purpose in the economy and the disposal of
non-core assets and operations. This strategy also aligned SOE
business strategies with sector department policies and regulatory
authorities. In addition to the focus on a core strategic purpose, the
DPE has directed key SOE to adopt targeted long range strategic
interventions, such as major investment programs, to enhance their
impact on the economy.
2) The Presidential SOE Review Committee is reviewing and will make
recommendations on, amongst others:
⪠A common understanding and definition for SOEs;
⪠The place of SOEs in a developmental state; and
⪠The strategic importance and value creation of SOEs.