Private firms are obligated to help capitalise SOEs, Malusi Gigaba says
The private sector needs to be crowded into state-owned enterprises (SOEs) to make the latter commercially and financially viable, Finance Minister Malusi Gigaba said Thursday. The private sector had to share in the risks, the debt burden and the responsibility to capitalise SOEs, Gigaba said in reply to questions by members of the select and standing committees on appropriations and finance, following his briefing to them on the 2018-19 budget. Gigaba said a "massive restructuring" of SOEs was required, which would bring on board the private sector. He referred to the statement by President Cyril Ramaphosa that the State Owned Company (SOC) co-ordinating council would be re-established with Ramaphosa at its head. The council would focus on clarifying the shareholder governance management of SOEs. It would streamline their architecture and establish a centralised governance model, which would assist in their improved governance and management. The Shareholder Management Bill is expe...
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