President Cyril Ramaphosa has announced that government would in 2021 implement a centralised model for the country’s embattled state-owned enteprises (SOEs).
While delivering the 2021 State of the Nation Address on Thursday, the President said the centralised SOE model would ensure a standardised governance, financial management and operational performance framework for all SOEs.
“To support our reform process, the Presidential State Owned Enterprises Council has outlined a clear set of reforms that will enable these vital public companies to fulfil their mandate for growth and development,” he said.
The President added that overarching legislation for parastals will be tabled in Cabinet this financial year and Parliament in the next financial year.
“The mandates of all SOEs are being re-evaluated to ensure that they are responsive to the country’s needs and the implementation of the National Development Plan,” he said.
The country’s SOEs have over the years faced a financial and leadership crisis that have led to a near collapse and often required government bailouts amounting to hundreds of billions of rands.