Major shift in SOE policy on the cards

A MAJOR policy shift that could see the powers of ministers and Parliament over state-owned entities (SOEs) increased is on the cards at the forthcoming ANC elective congress.

Yesterday, the party’s subcommittee on legislative and governance presented reviewed policies relating to legislature, governance and reconfiguration of the state.

The committee’s chairperson and Home Affairs Minister Ayanda Dlodlo said ministers responsible for SOEs must be empowered legislatively to be able to hold them to account.

“We are really calling for more accountability on the side of the boards as well as the executives, but also to ensure that the ministers themselves take it upon themselves to ensure that these boards do actually account.”

Dlodlo’s comments came as a number of key SOEs are experiencing financial instability due to mismanagement and corruption.

A parliamentary inquiry into Eskom is currently under way to investigate widespread corruption linked to executives and companies associated with the controversial Gupta family, who dubiously clinched contracts at the power utility.

In its policy proposals, the ANC wants serious policy interventions aimed at restoring governance and prudent management of SOEs.

The party said it wanted the upcoming conference to place emphasis on oversight protocols which would include legislatures being empowered to tighten their oversight role on the executive while ministers are given full control of managing state companies in their portfolio.

“Let that control be there with regard to expenditure and all other things that are conferred on the minister as per the (Public Finance Management Act) or also legislation that establishes a particular entity,” Dlodlo said.

The ANC is also critical of its cadre development policy, which it says negatively affects cadre deployment.