Explainer: Ramaphosa's plan to revive SA's state-owned entities

Explainer: Ramaphosa's plan to revive SA's state-owned entities

- President Cyril Ramaphosa has announced that the ANC agreed to changes aimed at state-owned entities

- With many of the nation's SOEs close to dysfunctional, the ruling party has agreed on interventions

- This follows the ANC's National Executive Meeting, in which pressing issues in the country were discussed

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President Cyril Ramaphosa has announced the ANC's agreement to facilitate changes intended to target state-owned enterprises.

eNCA reports that entities such as Eskom and SAA are nearing complete dysfunction and the ruling party has green-lighted a number of interventions to rectify the situation.

Ramaphosa outlined changes to the ANC's cadre deployment policy, with the party agreeing to appoint qualified officials to lead the way:

“There should be greater and more effective attention on the operational efficiency, integrity and functionality of our SEOs as well as ensuring that people who are fit for purpose are appointed to various positions in our state-owned enterprises."

READ ALSO: Ramaphosa vows connections will no longer help the unqualified succeed

But instilling skilled executives is not the only change set to happen within the nation's fleet of SOEs, Ramaphosa revealed:

“We should look on embarking on a consolidation and rationalisation process of our SEOs. We took the view that there is a plethora of these SOEs, more than 740 of them. We need to look at whether we should consolidate some or rationalise some, and this is the process that will get underway."

Political interference will also be limited to situations where it is truly needed, explained the politician:

“And if there is to be any [political interference], there should be on strategic matters and also where there is mismanagement and a clear company failure."

Briefly.co.za reported that an Eskom board member accused Public Enterprises Minister Pravin Gordhan of interfering in key decisions at the power utility, allegedly resulting in delays in vital repairs needed to stabilise the grid in favour of avoiding load-shedding.

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Source: Briefly.co.za

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