Government To Implement Holding Company To Manage SOEs

• President Cyril Ramaphosa said the government is going to establish a company that will manage the country's state-owned enterprises
• The SOEs, which previously reported to the Department of Public Enterprises, will report to line departments once the company is established
• South Africans thought it was a terrible idea and severely opposed it, listing the disadvantages of the possible move

With over seven years at Daily Sun and Vutivi Business News, Tebogo Mokwena, a Briefly News current affairs journalist, offered insights into South African politics, national, provincial and local governance, political parties and Parliament.

CAPE TOWN, WESTERN CAPE—President Cyril Ramaphosa's announcement that the government would establish a holding company to manage state-owned companies was met with fierce resistance from South Africans.

Cyril Ramnaphosa explains holding company for SOEs

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According to IOL, Ramaphosa spoke during a parliamentary debate, during which he responded to questions. Parliament debated the Budget Vote speech, and Ramaphosa announced that the Department of Planning, Monitoring and Evaluation would finalise the holding company process.

Ramaphosa said the SOEs that reported to the Department of Public Enterprises will report on policy and regulatory matters to their holding department. He said many countries overseas use the same approach with their SOEs. He meant that this meant the electricity would be more reliable and affordable. Water will be cleaner, and trains will be more efficient.

South Africans against holding company

Netizens on Facebook were not interested in a holding company for the state-owned enterprises.

Ernesto Gonzalez said:

"Then unbundle it in less than a year because they can't manage it properly."

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Karen Sanders said:

"And the holding company belongs to one of his mates! Here we go again!"

Tshingana Sandiso Prehessure said:

"I have a feeling that after finishing with their plan, one will resign and leave the president we are gonna vote for in a messy seat."

Cyril Ramaphosa claps back against Julius Malema

Similarly, Briefly News reported that Ramaphosa responded to Julius Malema's criticism against him.

The EFF president implied that Ramaphosa's father was a sellout during the Apartheid era because he was a police. Ramaphosa called him out.

Source: Briefly News