Committee chairperson’s response to the Minister’s statement on selling under-performing Public Enterprises

The Chairperson of the Portfolio Committee on Public Enterprises would like to clarify the issue regarding a statement attributed to the Minister of Public Enterprises, Barbara Hogan on state owned enterprises.

The Minister is quoted as saying government might sell underperforming Public Enterprises.

There is no basis for the statement. There was no consultation on the issue. This is a policy shift and therefore it cannot be entertained without proper consultation.

The Minister did not raise the matter when she met the Portfolio Committee and it was not discussed by the study group.

It will be appropriate for the Minister to explain her statements. Ministers are political heads of departments they implement government policy and are accountable to Parliament.

We regard state-owned enterprises as key in the country’s economic growth path both in terms of job creation, halving poverty and particularly in enhancing the objectives of rural development.

The recent global downturn has proved that the market on its own and without state intervention is disastrous. It would then be folly of us to sell these state-owned enterprises merely because they’re facing challenges which we strongly believe they are manageable.

Enquiries or interviews with the chairperson contact:
Yoliswa Landu
Tel: 021 403 8203
Fax: 021 403 8096
Cell: 073 738 0182

Issued by: Parliament of South Africa
11 June 2009
Source: Parliament of South Africa (http://www.parliament.gov.za)

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