Parliament - Saturday, 16 November 2024 - The Portfolio Committee on Planning, Monitoring and Evaluation received a briefing on Friday from the Department of Planning, Monitoring and Evaluation on the department’s annual performance report for the 2023/2024 financial year, audited financial statements, and the State-Owned Enterprises Bill.
The department reported that it had achieved 54% of its performance indicators, significantly below the 90% target threshold. Additionally, the Auditor General's report on the 2023/24 audit outcomes relevant to the portfolio indicated the absence of financial statements for both South African Airways (SAA) and Eskom.
The committee expressed that the lack of financial statements from SAA and Eskom hampers effective oversight and accountability. It pointed out that without timely and accurate financial reporting, it becomes difficult to assess the financial health of these entities and hold them accountable for their performance.
Throughout the meeting, members of the committee raised concerns regarding ongoing problems surrounding management and oversight of state-owned enterprises (SOEs). The committee highlighted the importance of effective governance and accountability to ensure that these entities contribute positively to the South African economy, and the welfare of the South African citizens.
Discussions focused to a large extent on the historical context of state capture. Members of the committee emphasised the importance of prevention of the recurrence of capture of the current operational framework of the SOEs.
The committee emphasised the direct impact of the performance of SOEs on the socio-economic rights of South Africans, especially concerning energy supply and transportation infrastructure. The committee called for immediate interventions to enhance service delivery and restore public confidence.
Regarding the SOE Bill, the Chairperson of the committee, Ms Teliswa Mgweba, expressed gratitude to the department and reiterated the committee's commitment to ensuring that the legislative process remains transparent and inclusive. She emphasised the necessity of soliciting public submissions as part of the committee's mandate, stating, "We cannot bypass the process of public participation. It is essential that we engage with our stakeholders and ensure their voices are heard,” emphasised Ms Mgweba.
The committee voiced its concern regarding the proposed selection panel for appointments within state enterprises. It questioned the transparency of the process and the need for a more diverse and independent selection mechanism to avoid political bias. Members of the committee sought clarification on how the Companies Act and the Public Finance Management Act (PFMA) would be integrated into the operations of SOEs under the new Bill. They suggested a comprehensive analysis to ensure these laws are effectively applied without conflicting with the Bill’s objectives.
The committee also articulated a pressing need to reform SOEs due to their current inefficiencies and under-performance, which hinder their ability to fulfill their developmental mandates to positively contribute to the economy. The committee pointed out that SOEs have become burdened by political interference which leads to conflicts of interest and compromising operational independence. The committee was of the view that this political meddling often results in mismanagement and poor decision-making, detracting from the goal of making these entities profitable and sustainable.
Furthermore, the committee highlighted the necessity of conducting a study tour to learn from successful international models that have effectively reformed their SOEs. The committee also expressed interest in examining best practices from countries such as Malaysia, Singapore, China, and France, aiming to draw valuable insights to inform the South African context and lead to more effective governance and operational efficiency within local SOEs.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON PLANNING, MONITORING AND EVALUATION, MS TELISWA MGWEBA
For media inquiries or interviews with the Chairperson, please contact the committee’s Media Officer:
Name: Yoliswa Landu (Ms)
Cell: 081 4974694
E-mail: ylandu@parliament.gov.za
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