It is with disappointment that we learn of the delay in implementing crucial reforms for state-owned entities (SOEs) in South Africa.
The proposed plan to place these entities under the control of a single holding company, along with the government’s intention to reduce its majority shareholding in the national airline, has been put on hold by Parliament due to time constraints.
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This delay comes as a blow to the much-needed restructuring of SOEs, which have long been plagued by inefficiency and mismanagement. President Cyril Ramaphosa’s establishment of the Presidential State-Owned Enterprises Council in 2020 was a step in the right direction, signalling a commitment to improving the performance of these entities.
However, the legislative process required to enact the proposed reforms has proven to be a challenge. The parliamentary committee responsible for discussing the repeal of the South African Airways (SAA) bill was advised not to proceed due to time limitations.
This decision means that the bill, which would pave the way for the sale of a majority stake in SAA to a private entity, has also been put on ice.
While it is understandable that time constraints exist, it is disheartening to see such crucial reforms being delayed.
The consolidation of SOEs under a single holding company would streamline operations and improve accountability. It would also eliminate the need for a separate department to oversee these entities, leading to cost savings for the government.
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As we await further developments, it is essential for the parliamentary committee to prioritize its investigation into complaints of irregularities involving the SAA transaction. Transparency and accountability are paramount in ensuring the success of any reforms in the future.
It is our hope that the next political term will see a renewed commitment to implementing these reforms. The efficient functioning of SOEs is crucial for the economic growth and development of our country. Let us not lose sight of this goal and continue to work towards a more accountable and transparent system.
