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Zuma: No finality on role of SOE council

Cape Town – President Jacob Zuma said there is still no finality on the role that the recently established Presidential State-Owned Entities Coordinating Council under his jurisdiction will fulfil. 

Responding to parliamentary questions on Wednesday, Zuma said no finality has been reached and there are no terms of reference or any other governance structure for the council that has been established. 

In August, Minister in the Presidency responsible for Monitoring and Planning Jeff Radebe announced that there was a decision to form the Presidential State-Owned Enterprise Coordinating Council to provide Zuma with insights into the strategic decisions taken at state-owned enterprise (SOE) level. 

The announcement caused a public outcry as the move was viewed as a power grab by the president. A statement by the presidency followed in which Zuma declared there was nothing sinister about the establishment of such a committee, as it was a recommendation from the inter-ministerial committee chaired by Deputy President Cyril Ramaphosa. 

READ: Govt sheds light on Zuma's role as head of SOCs

In a written reply to a question posed by Anton Alberts FF Plus MP, Zuma said the inter-ministerial committee under Ramaphosa remains responsible for overseeing state-owned entities. 

“The proposal to establish the Presidential State-owned Enterprises Coordinating Council is aimed at assisting to ensure improved oversight and coordination of state-owned companies,” Zuma said. 

He repeated the same view in response to question from the DA’s Natasha Mazzone, but said the inter-ministerial committee called for an SOE Council of Ministers. 

“This inter-ministerial proposal is still to be discussed further in Cabinet,” Zuma said. “At this stage no finality has been reached. Government welcomes any inputs from stakeholders on this important task of improving SOEs so that they assist in driving economic transformation and improve the lives of our people.” 

Zuma emphasised that the work of such coordinating structures are merely to coordinate and supervise and ensure that all work together and not in isolation. 

READ: Zuma vs Ramaphosa: Who is in charge of SOEs?

“It is not to directly run projects or take over responsibilities of line function departments. The Department of Public Enterprises therefore continues to perform its task as the shareholder of the state entities that report to it,” Zuma said. 

Mntomuhle Khawula, IFP MP, asked Zuma which non-viable SOEs would be phased out as mooted in his 2016 state of the nation address. 

Zuma sidestepped the question, and didn’t name any specific SOEs. He merely said government would implement the recommendations of the Presidential Review Commission “which outlines how the institutions should be managed”. 

In response to a question posed by Deirdre Carter from Cope on why SAA board chairperson Dudu Myeni was reappointed despite widespread objections, Zuma said she was appointed cabinet. 

“The Minister of Finance (Pravin Gordhan) has stated publicly that the appointment of Ms Myeni, for a period of only one year, is aimed at ensuring continuity at SAA,” Zuma concluded. 

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