National carrier SA Airways is among the state-owned entities no longer the responsibility of the now disestablished Department of Public Enterprises. File photo
The government of national unity (GNU) has redistributed the powers previously assigned by officials of the Department of Public Enterprises, which was not retained following the May 29 national and provincial elections.
Most of the powers previously held by former public enterprises minister Pravin Gordhan have been shared by several ministers.
Electricity and Energy Minister Dr Kgosientsho Ramokgopa will now be responsible for the Eskom Conversion Act, which provides for the conversion of the power utility into a public company, having a share capital incorporated in terms of the Companies Act.
Ramokgopa also assumes power for various strategic government-owned entities such as the Central Energy Fund and National Nuclear Regulator, while Mineral and Petroleum Resources Minister Gwede Mantashe will remain in charge of the National Energy Regulator of SA.
State-owned aerospace and military technology company Denel is now the responsibility of Defence and Military Veterans Minister Angie Motshekga.
Mantashe also takes over state-owned diamond mining company Alexkor.
National carrier SA Airways and another state-owned airline SA Express will now be the responsibility of Transport Minister Barbara Creecy, while her water and sanitation counterpart Pemmy Majodina takes over the Overvaal Nature Reserve in Mpumalanga.
President Cyril Ramaphosa announced in the government gazette that the administration and the powers of the relevant legislation were transferred immediately before he assumed office on June 19.
This week, Ramaphosa’s Cabinet announced that in line with an undertaking he previously made before Parliament to recalibrate state-owned entities (SOEs), the responsibility for all the country’s strategic SOEs has been transferred to the various line ministries, after the president signed the relevant proclamation to this effect.
”This step coincides with plans to create a centralised shareholder model through which the state seeks to better leverage the capabilities of our SOEs to grow the economy, improve service delivery, and infuse the SOEs with the requisite commercial and strategic agility,” the Cabinet explained.
At its December 2022 national conference, the ANC admitted that the executive was too large and there was need to rationalise departments.
In addition, the party stated that there was a need for a cost-benefit analysis of spheres of government and revisit powers and functions.
The ANC also noted that there had to be consideration of the reconfiguration of the Department of Traditional Affairs to incorporate areas of culture and land reform to strengthen its capacity.
When he announced his national executive after the elections, Ramaphosa admitted the he had earlier indicated his administration’s intention to reduce the number of portfolios, but due to the need to ensure that his executive was inclusive of all parties to the GNU this was not possible to achieve.
Ramaphosa’s executive increased from 28 ministers to 32, as well as 33 deputy ministers to 43.
He also announced that there would no longer be a Ministry of Public Enterprises, and the coordination of the relevant SOEs would be located in his office during the process of implementing a new shareholder model.
However, the increased national executive has been criticised by several political parties not part of the GNU such as the EFF, ActionSA and the African Christian Democratic Party.
Sunday Independent
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