The Portfolio Committee on Public Enterprises today met with the Department of Public Enterprises. The department briefed the committee on matters related to shareholder compacts signed with State Owned Companies (SOCs).
Briefing the Committee the Director-General, Mr Tshediso Matona, said SOCs have a dual mandate in that they have commercial and non-commercial imperatives. Shareholder compacts set out annual key performance indicators and performance measures in support of the strategic objective. Members of the Committee congratulated the department on finalising and concluding shareholder compacts, thereby setting out clear performance targets.
Chairperson of the Committee, Ms Dipuo Letsatsi-Duba, said the processing of the Government Shareholder Management Bill by Parliament will need to be speeded up. The department is yet to table the Bill before Parliament. The Bill will, among other things, enhance the functioning of the department by enabling it to make strategic interventions in SOCs.
Ms Letsatsi-Duba asked how soon the department will be able to table the Bill. “It is important because it will enable the Committee and the department to play its oversight and hold the boards accountable”. This (Bill) will ensure that we make boards and executives accountable. Furthermore, the legislation will also assist us to determine the remuneration of the board members and executives. As public representatives, people on the ground are complaining that board members and executives are earning a lot of money where there is no value for money,” said Ms Letsatsi-Duba.
Members of the Committee recommended that punitive measures needed to be put in place for non-performance as the Labour Relations Act is clear on actions that need to be taken where there is non-performance. Making a specific reference to Medupi, the Committee questioned the department on mechanisms put in place to recoup taxpayers’ money on government infrastructure projects that have escalated in costs from the initial contract agreement.
For media enquiries or interviews with the Chairperson, please contact:
Ms Yoliswa Landu, Parliamentary Communication Services
Tel: 021 403 8203
Cell: 073 738 0182
E-mail: ylandu@parliament.gov.za
