MEC says SOEs must step up
FINANCE, economic development, environmental affairs & tourism MEC Oscar Mabuyane said state owned entities were the heartbeat of the economy.
Mabuyane was speaking at the Black Management Forum debate on SOEs as catalysts for inclusive economic development at the Chris Hani Co-operative Development Centre in Komani.
He said entities such as Coega, the East London IDZ, Eastern Cape Development Corporation and Eastern Cape Parks and Tourism Agency were meant to grow the economy and to create job opportunities for people by serving as manufacturing hubs.
“We are not antiglobalisation, nor anti-imports but we are advocating for a trade balance as most of the finished products we import are made from our own raw material.
“SOEs should be playing a leading role to get us to a trade balance.” Mabuyane said SOEs were lagging behind due to poor management at the helm. After 24 years of democracy, there were no excuses for the failure to drive the economic development agenda.
“Sadly SOEs are led by black managers who form part of the 73.2% of black executives in the public sector.
“When we hear shocking stories of trains that are bigger than the railway tracks they are supposed to run on, and the shenanigans of coal contracts at Eskom, we ask ourselves what is wrong with our fellow black countrymen at the helm of these SOEs.”
He said many managers had turned the vision of a better life for all into a vision of a better life for themselves, adding that it was important for board members at SOEs to play their oversight role.
“The board members must not find themselves entangled in operational matters such as procurement, which then leads to a paper trail of billions of tax payers’ money finding its way to their business and family associates.”
He said provincial entities were in good standing compared with national SOEs.
“The auditor general will reveal in a few months’ time through the audit outcomes, that our provincial public entities are well managed and are managed by capable and qualified executives.”
He said a healthy financial status was needed to attract investors and facilitate transformation.