In an effort to stabilize governance in parastatals, President Cyril Ramaphosa plans to create state-owned holding companies (SOHCs) to accommodate strategic state-owned enterprises (SOEs) and exercise shareholder oversight.
SOHC is an entity established by the state to own/finance new SOEs or consolidate existing SOEs by acquiring shares, controlling financial resources and supporting management through operational monitoring.
NOW Read: ‘Too late to save’: South Africa’s SOEs are broken beyond repair
National Assembly
Ramaphosa returned to the National Assembly yesterday for the first question and answer session of the year. The president answered six questions that touched on national and international issues.
This includes the position of South Africa as the chairman of the group of Brazil, Russia, India, China and South Africa (Brics), the fight against crime, the plan to build a development country that is able to implement the Reconstruction and Economic Recovery Plan and other aspects. Expropriation Bill.
Inkatha Freedom Party MP Mkhuleko Hlengwa asked Ramaphosa if he intends to dissolve the public enterprises and state-owned enterprises departments into their respective line functional departments.
Ramaphosa said that SOEs play an important role in providing public goods and infrastructure for economic growth. “This reconfiguration process takes the general approach that SOEs operating in certain economic sectors must be placed in the relevant department.”
Also read: Costs for banks and BUMN may increase if SA is greylisted