Parliamentary Question: dpe: Role of the state-owned enterprises (SOEs)



Mr D B Feldman (COPE-Gauteng) to ask the Minister of Public Enterprises:
(1) Whether the role of the state-owned enterprises (SOEs) is adequately defined in the Government’s National Economic Strategy as stated in his department’s Strategic Plan for 2009-2012 which assists his department to systematically justify the allocation of capital to the SOEs;

if not, why not; if so, on what basis is the capital being allocated to the SOEs at present;
(2)whether any processes are being implemented to ensure that the role of the SOEs is defined in the Government’s National Economic Strategy; if not, why not; if so, what are the timeframes that are attached to such a process?

b.The conceptualisation of the role of State Owned Enterprises (SOE) in the South African economy has evolved post the democratic transition in 1994. Up to the end of 2003, the Department of Public Enterprises was focused on the implementation of restructuring and privatisation initiatives. From 2004, the DPE strategy was changed to direct the SOE in its portfolio to focus on the consolidation of core services that supported a strategic purpose in the economy and the disposal of non-core assets and operations. This strategy also aligned SOE business strategies with sector department policies and regulatory authorities. In addition to the focus on a core strategic purpose, the DPE has directed key SOE to adopt targeted long range strategic interventions, such as major investment programs, to enhance their impact on the economy.
c.The Presidential SOE Review Committee is reviewing and will make recommendations on, amongst others:
i.A common understanding and definition for SOEs;
ii.The place of SOEs in a developmental state; and
iii.The strategic importance and value creation of SOEs.