Finance Minister Enoch Godongwana said South Africa probably had far too many state-owned entities (SOEs) considering its finances.
Godongwana, however, would not say which state-owned entities may be scrapped.
He was responding to parliamentary questions from DA MP Alexandra Abraham, about the National Development Agency (NDA) which was initially part of a list proposed by the National Treasury and The Presidency to close public entities.
Graham asked why the NDA had since been removed from the list, and what recommendations were made to the Department of Social Development and the NDA, to improve cost cutting measures and stay off the list.
She also wanted to know the names of the other entities on the list likely to be scrapped.
In his reply, Godongwana said the national government departments were re-opening discussions around rationalisation of departments and public entities in light of the tight fiscal framework in 2023/24, and current problems such as the cost of the 2023 wage agreement.
“Whereas this process is starting up, there is at this stage no agreed-upon list of entities that should be rationalized or closed.
“Thus, it would be premature to name any specific entities that might be under consideration,” he said.
“That said, the government probably has far too many public entities especially given our fiscal circumstances,” he said.
Godongwana’s response comes almost two months after Public Enterprises Minister Pravin Gordhan, was asked whether the plan to relocate SOEs under his department to the respective departments had been abandoned.
Gordhan said the relocation of the state-owned enterprises was the prerogative of the President.
He also said the 2022 and 2023 State of the Nation Addresses made reference to the work and recommendations of the Presidential SOE Council and the global trend towards a centralised shareholder model as highlighted by the Organization for Economic Cooperation and Development and various country experiences.
Cape Times