The dissolution of the Department of Public Enterprises (DPE) has seen “shareholder responsibility” for State-owned enterprises (SOEs) moved to “line function ministries”.
This is the gist of a proclamation signed by President Cyril Ramaphosa this week and sees Denel added to the workload of Defence and Military Veterans Minister Angie Motshekga, in addition to her overseeing the SA National Defence Force (SANDF) and Department of Military Veterans (DMV).
The Presidential proclamation transfers the “administration, powers and functions entrusted by specific legislation” from the now defunct DPE to, in the case of Denel, Motshekga’s ministry.
She is also the shareholder (government) representative for defence and security acquisition and project management company, Armscor, as well as the Castle Control Board. Additionally, she is responsible for the Military Ombud, the Reserve Force Council (RFC) and the Defence Force Service Council (DFSC).
As is generally the case with Presidential and other government edicts, words come head of action and Ramaphosa’s Minister in the Presidency, Khumbudzo Ntshavheni, is taking on DPE authority until financial and human resources are “appropriately transferred”.
She is also the President’s point person for the National State Enterprise Bill. When on the Statute Book the Bill will set out SOE shareholder responsibility to be transferred “in a phased manner into the envisaged national enterprise holding company”.
In addition to Denel, six other SOEs now find themselves reporting to ministers other than Pravin Gordhan, democratic South Africa’s last public enterprises minister. They are Alexkor (Minister of Mineral and Petroleum Resources), Eskom (Minister of Electricity and Energy), Safcol (SA Forestry Company – Minister of Forestry, Fisheries and the Environment), SAA (South African Airways – Minister of Transport), SA Express (Minister of Transport) and Transnet (Minister of Transport).
