President Cyril Ramaphosa says the Government of National Unity (GNU) will implement a centralised model for State-Owned Enterprises (SOEs) that will improve accountability, transparency, governance and oversight, while reducing inefficiency and the potential for corruption.
Ramaphosa said in this administration, the GNU will complete the work to restore the financial position and operational performance of SOEs.
Delivering the Opening of Parliament Address on Thursday, Ramaphosa said the establishment of a state-owned SOE holding company will give South Africa greater capacity to build a sovereign wealth fund.
"This has been done successfully by other countries whose sovereign wealth funds have built up capital from the high performance of the state owned enterprises rather than from the fiscus.
"To tackle crime and corruption we must have capable, sophisticated and independent law enforcement agencies that can fight complex and organised crime," Ramaphosa said.
The president said the Medium-Term Development Plan will set out a well-defined vision and strategic plan that outlines clear goals and includes specific, measurable objectives and a roadmap for achieving them.
“These goals will be properly aligned with the Budget, which will support the implementation of these objectives. In all this work, the National Development Plan Vision 2030 remains the defining blueprint for our country’s growth and development,” he said.
Earlier this year, a Treasury report on SOEs, for the third quarter of last year, revealed the poor financial state of Transnet, Eskom and the South African Post Office.
The report further noted that Transnet had recorded a decline in freight rail, owing to theft, vandalism and operational inefficiencies.
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