ANC suggests moving SOEs away from public enterprises department

The ANC is considering moving state-owned enterprises (SOEs) from the public enterprises department to their line departments to improve efficiency.

The move was mooted during policy discussions at the party’s national conference, at which Cyril Ramaphosa was re-elected for a second term. But it was not adopted by delegates, because the conference was adjourned and will reconvene on January 5.  

If the more than 4,000 delegates adopt it when the conference reconvenes, it would mean that crucial SOEs such as Eskom and Transnet could be moved from public enterprises to the mineral resources & energy department and the department of transport, respectively. 

Policy recommendations of the ANC are traditionally incorporated into government policy. 

“Delegates were saying can we ensure that state-owned entities are put into the line department for policy and co-ordination,” said the head of the party’s economic transformation committee, Mmamoloko Kubayi.

The Treasury sees SOEs as a major risk to the fiscal framework and has introduced a strategic equity partner into SAA and enabled private generation of electricity and is planning private participation in the freight rail sector to increase competition, boost efficiency and reliability, and reduce costs for customers.

The committee did not discuss the establishment of a holding company that would oversee major SOEs, which has previously been mooted by the presidential review committee headed by Riah Phiyega and the presidential SOE council.

“Delegates actually want us to move the entities from the [public enterprises department] to the line departments,” Kubayi told Business Day. 

maekot@businesslive.co.za