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The Portfolio Committee on Mineral and Petroleum Resources has welcomed the Central Energy Fund's (CEF) marked improvement in financial performance for the 2024/25 financial year, following the entity's briefing to the committee on Tuesday on its annual report.

The CEF Group reported a net profit of R553 million for the year under review, representing a 194% turnaround from the previous financial year's R552 million loss. The improvement is attributed to stronger cash generation across the Group as well as the accounting profit realised from the acquisition of the SAPREF Refinery, which has significantly strengthened the Group's position.

Committee Chairperson Mr Mikateko Mahlaule said that the committee is encouraged by the progress made. “The profitability recorded this year demonstrates that strategic interventions, including the acquisition of SAPREF Refinery, are beginning to yield tangible benefits for the Group,” he said.

Despite the improvement in profitability, the CEF Group reported a decline in overall revenue compared to the 2023/24 financial year. This reduction is due mainly to PetroSA securing lower volumes and the African Exploration Mining and Finance Corporation (AEMFC) facing Eskom's intermittent suspensions of its coal supply contract during the reporting period.

Mr Mahlaule appealed to the Department of Mineral and Petroleum Resources to intervene in the ongoing matter between PetroSA and the South African Revenue Services to create an enabling environment for the company to focus on its mandate.

The Group's assets increased by 6% (R2.2 billion) while liabilities rose by 7% (R1.8 billion). The committee also noted the 16% growth in net asset value since 2020/21, as well as improvements in cash balances, which increased from R13 billion in 2023/24 to R16 billion in 2024/25, a 21% rise.

Mr Mahlaule said the financial indicators presented show encouraging upward trends, saying that the committee acknowledge the reported gains of 2.4% in profit margins and 8.5% in cash balance improvements across the past five years.

On audit outcomes, the CEF Group reported that two of its 10 entities have maintained clean audits since 2020/21, while iGas regressed from a clean audit in the previous financial year to an unqualified audit with one material finding.

Eight entities recorded material misstatements in their annual financial statements, though four of these had only a single finding. The Group has successfully closed 10 material findings since 2020/21, with only one outstanding finding in the year under review.

Although welcoming measures outlined to strengthen internal controls, including capacitating the financial accounting unit, the committee emphasised its expectation for continued governance. It was firm on its long-held view that all entities within the Group must achieve clean audits.

The committee commended the CEF Group for its continued efforts and reiterated its commitment to ensuring that the entity fulfils its mandate of securing South Africa's energy supply through sound governance, accountability and prudent financial management.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.

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The National Assembly yesterday moved to strengthen executive oversight by adopting several amendments to the Rules of the National Assembly, including the establishment of a Committee on the Presidency.

By giving the green light to this committee, the NA will, for the first time, have a dedicated, rule-based structure for scrutinising the Presidency's operations and budget.

The decision to establish the committee follows extensive research and several calls for such a committee, given the Presidency's overarching role in government. The issue got traction in the Sixth Parliament, when the Parliamentary Budget Office (PBO) was tasked with conducting preliminary research on oversight mechanisms for the office of the Head of State and Government. The PBO's findings confirmed that Vote 1 (The Presidency) is subject to the same oversight obligations and prescripts as any other budget vote. In April 2023, the Rules Committee undertook an international study tour to engage other parliamentary systems on how they oversee the operations of the executive centre.

Drawing from this groundwork, the matter resurfaced in the Seventh Parliament. On 31 October 2024, the Rules Committee endorsed the principle that the Assembly should establish a Committee on the Presidency and mandated its Subcommittee on the Review of Assembly Rules to draft the technical amendments needed to give effect to this decision. After considering the Subcommittee's report of 13 November this year, the Rules Committee agreed that the Assembly should adopt these rule amendments.

Yesterday, the NA adopted the report proposing rules for the establishment of a Committee on the Presidency and to note the proposed composition of this committee. The committee on the Presidency would comprise eleven members, with four members from the ANC, two from the DA, one from the MKP, one from the EFF, and three members from the smaller parties.

Other proposed amendments in the report that were agreed to include amendments to the NA's questions procedure, which may promote greater responsiveness and executive accountability during question sessions. Oral question time will now include features of interpellations, which provide Members an opportunity to delve deeper with follow-up questions. The time for questions will be increased by 30 minutes.

In adopting the report, the NA has also agreed to the proposed composition of the Committee on Government Undertakings and Petitions. Parliament previously recognised that its existing mechanisms did not sufficiently track undertakings made by Ministers during debates and question sessions, nor did they always ensure timely and effective processing of public petitions. To address these shortcomings, the NA previously established a dedicated committee in terms of Rule 252B. The Rules Committee has now agreed that this committee, like the committee on the Presidency, will consist of eleven members, with the same proportional breakdown: four from the ANC, two from the DA, one from the MKP, one from the EFF and three representing the smaller parties.

Following the NA's adoption of the report, these rules can now be implemented.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.