Review of SOEs to support state development - Zuma

Wednesday, March 24, 2010

Cape Town - President Jacob Zuma says a two-pronged review of State-Owned Enterprises (SOEs) will culminate in a united government position on the role of SOEs in supporting government's developmental agenda.

"The two processes are complementary and will culminate in a single synthesised report for consideration and decision making by Cabinet," he said in reply to a question by the Democratic Alliance on Wednesday.

DA parliamentary leader Athol Trollip had asked whether the review of state-owned entities will look at the impact of government's propensity to appoint only persons of a certain political organization on public entities.

Zuma said first part of the review will be undertaken internally in government under the leadership and oversight of the Inter-Ministerial Committee that is co-chaired by Public Enterprises Minister Barbara Hogan and Finance Minister Pravin Gordhan.

The review is expected to make recommendations on a number of issues, including how government can strengthen alignment between its development objectives and the strategic role to be played by SOEs in the economy.

It will also make recommendations on the co-ordination of infrastructure investment by SOEs to ensure that the country has the capacity ahead of demand and ensuring that it is co-ordinated with the rollout of the required infrastructure