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STATE ENTERPRISES MINISTER SAYS SOUTH AFRICAN SOES IN NEED OF IMPROVEMENT

JOHANNESBURG– South Africa’s Minister of Public Enterprises, Pravin Gordhan, says the government has to turn things around in State-owned enterprises (SOEs) to ensure that they can transform into sustainable businesses in order to improve private investor confidence.

Part of our task now as Government is to turn these entities into credible businesses, sustainable businesses, so that we get private investment; if you try to sell a junk entity, today 25 per cent (of the shares) might be worth 25 million Rand, tomorrow it could be worth 250 million, he said here Sunday.

In an interview with the South African Broadcasting Corporation, Gordhan said private participation in SOEs is a government policy and the government was working on the implementation of this policy.

Under the previous Cabinet there was a set of policy issues which were agreed upon, for example what is the governance model, how do you choose board members (of SOEs), what is the procedure of the remuneration and one of those policies was the question of private sector participation.” he added,

“So it is a policy of government, the second is now we have to execute that policy, many of the entities remain under public control.

He highlighted that there have been gains regarding public-private co-operation in SOEs in the form of the relationship between Eskom, the national electricity generating and distributing company, and independent power producers.

Source: NAM NEWS NETWORK

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