Leash to be tightened on dysfunctional SOEs

PRESIDENT Cyril Ramaphosa has promised to clamp down on dysfunctional state-owned entities (SOEs) and wants to change the way they function.

He also said he would soon appoint the new head of the National Prosecuting Authority (NPA) after a court ruling and hinted at fixing the SA Revenue Service (Sars).

Ramaphosa warned in his maiden State of the Nation address last night that SOEs cannot borrow their way out of debt.

He said action had already been taken to fix Eskom and more plans were under way to get SOEs out of financial distress.

“These SOEs cannot borrow their way out of their financial difficulties, and we will therefore undertake to review the funding model of SOEs and other measures,” said Rama-

Ramaphosa warns that

phosa.

SOEs were sitting on guarantees of almost R500 billion, with Eskom having the biggest guarantees of R350bn.

“We will change the way that boards are appointed so that only people with expertise, experience and integrity serve in these vital positions,” he said.

He said they would also not allow board members to interfere in procurement processes.

Board members at Eskom and Denel have been implicated in the procurement process and giving Gupta-linked companies contracts. He said they would fight corruption in the public sector and SOEs.

Ramaphosa added the criminal justice system was beginning to deal with corruption. This followed the swoop on Gupta associates, who were arrested this week and appeared in court.

The Hawks were still in search of Ajay Gupta, who has been on the run for the last few days after he failed to turn himself in.

He also said the Commission of Inquiry into state capture, chaired by Deputy Chief Justice Raymond Zondo, would also clamp down on corruption and state capture.

The commission was expected to begin its work soon after former president Jacob Zuma published the regulations that would allow Zondo to appoint the secretary of the commission, evidence leaders and other key people.

He repeated his earlier comments that the commission would not prevent the arrest of those who were implicated in state capture.

“Amasela eba imali karhulement mawabanjwe (arrest the thieves who steal government money),” he said in Xhosa.

He said South Africa may have a new head of the NPA soon, although Shaun Abrahams has gone to the Constitutional Court to challenge the decision of the high court to remove him from his job.

Ramaphosa said he would also appoint a commission of inquiry into Sars.

The service’s boss Tom Moyane has been accused of failing to clamp down on corruption at the tax agency.