Even Cosatu Now Rejects the SOE Bill

Dear Editor

After first welcoming the draft legislation, COSATU has now joined calls in opposition to the National State Enterprises Bill.

The Bill in its current form is being driven by Minister Maropene Ramokgopa because the State can no longer afford wholesale funding of state-owned enterprises. As such, privatisation of state-owned enterprises is required, which is putting her at odds with her party allies.

The intention of the Bill to alleviate the fiscal burden on the state, and aspects of the privatisation agenda, are in line with the DA position. But the Bill goes further to centralise control of South Africa’s diverse SOEs under one single company, which is not only unnecessary, expensive and cumbersome but also dangerously at risk of grand-scale corruption.

The DA unequivocally rejects the creation of a Mega-SOE that will cost a fortune to manage, will be cumbersome, would require management of vastly diverse industries simultaneously, would add another complex layer of bureaucracy, and by centralising billions in budget will heighten the risk of corruption.

The DA believes that individual SOEs should be in a competitive environment and privatised or at least run in joint partnerships, where the technology and expertise lies in the hands of the private sector.

Not only does the Bill do the opposite but further does so without checks and balances. This strongly risks a return to State Capture.

Existing SOEs already report to their relevant ministers with the oversight of parliamentary committees. This is to ensure we move towards the recommendations of the Zondo Commission, where the Executive can be fully held to account.

An opportunity for the public to comment on and reject this Bill has now been opened by the Minister, and the DA strongly urges South Africans to speak out. The DA urges those who can, to make submissions against the creation of an enormous, expensive, and high-risk mega-SOE that will do nothing to improve the outputs of existing state companies.

Members of the public are encouraged to express opposition through written submissions on the Bill. These can be submitted to nsebill@parliament.gov.za, by 14 February.

We believe that the public comments will show the Minister that the Bill cannot proceed in its current form.

Regards

Darren Bergman MP
DA Spokesperson on Planning, Monitoring & Evaluation