Some SOEs in recovery

Will centralisation of oversight lead to further improvement, and less waste and corruption?

- Adriaan Kruger

The debate around whether each state-owned enterprise (SOE) should report to its relevant state department and minister or be housed in a new holding company seems irrelevant when considering their bad performance and governance failures. Maybe the focus should be to hold the management responsible for their failures instead of moving the chairs around on a sinking ship.

President Cyril Ramaphosa mooted a new holding company for all the SOEs, effectively creating a new legal entity that would report directly to the president’s office. The reorganisation came about with the demise of the department of Public Enterprises, a move announced by Ramaphosa in July.

Eskom, Transnet, South African Airways (SAA), SA Express (liquidated in 2022), arms manufacturer Denel, Alexkor diamond mine, and forestry company Safcol reported to the department.

Last week, Ramaphosa issued a proclamation to transfer Eskom to Minister of Electricity and Energy Kgosientsho Ramokgopa.