Dear Editor
The Democratic Alliance (DA) again calls for the National State Enterprises Bill to be scrapped following strong public disapproval and the National Economic Development and Labour Council’s (NEDLAC) failure to reach consensus on the Bill’s impact.
NEDLAC confirmed to Parliament this week that it could not overcome disagreements between business, labour and government on the viability of the proposed Bill, which fully accords with the DA position that this Bill is not fit to proceed.
NEDLAC’s failure to reach consensus on the Bill provides a clear signal that South Africa, across all economic role-players, will not allow the creation of an ineffective holding company for State Owned Enterprises (SOE’s) that wastes taxpayer money and hinders growth.
The highly controversial Bill introduced by Minister Ramokgopa proposes the creation of a State Asset Management SOE as a holding company with all state enterprises as its subsidiaries, with the state as sole shareholder – which will be a recipe for grand-scale corruption, a looting pot for cadres and a cumbersome extra national layer of mismanagement.
The DA stands diametrically opposed to this unacceptable move, because the bill centralizes state ownership and removes the application of the Public Finance Management Act to both the holding company and its subsidiaries, which will decrease parliamentary oversight into these bodies in favour of unchecked political control, with large influence resting in the Presidency.
In terms of section 5(1)(d) of the NEDLAC Act, the Council is mandated to consider and reach a consensus on all legislative changes relating to social, economic and labour policy and advise parliament. The fact that the Council failed to reach a consensus on the bill strengthens the DA’s position that another failing SOE is the last thing South Africa needs.
If NEDLAC cannot support the State Enterprises Bill, neither should Parliament. It is time for it to be scrapped.
It would be incomprehensible for Parliament to pass a bill that facilitates increased inefficiency and the cost of economic growth and job creation.
Regards
Darren Bergman MP
DA Spokesperson on Planning, Monitoring & Evaluation