Organised labour has welcomed the call for the realignment of state-owned enterprises (SOEs) to line departments and scrapping of the Department of Public Enterprises (DPE) at the ANC’s 55th elective conference.
But it is sceptical that this will be the answer as state or political interference undoes the best intentions.
The final resolution on this and other policy positions are to be announced on January 6, 2023 after the second leg of the national conference reconvenes in a hybrid fashion.
However, a snap engagement of labour unions has revealed that the idea is not without its merits as crucial entities like energy provider Eskom battles with not only the resignation of CEO André de Ruyter, but has to real with the rampant corruption and maladministration, which De Ruyter cited as the reason for jumping ship; and as the deal for South African Airways (SAA) hangs in the air.
Cosatu’s head of the Parliamentary portfolio, Matthew Parks, said the trade union federation had long called for the various SOEs to be placed under their line function to help ensure a clear line of accountability and policy coherence.
“There is also a need to consolidate and reduce the number of ministers and deputy ministers as many of their portfolios duplicate each other. While placing SOEs under their direction of their line function ministries is important, it is not enough on its own.
“The SOEs have a key role to play in growing the economy and were once well-run. Organisations, including the FW de Klerk foundation, said South Africa has experienced more than 3 233 hours of load shedding – with nearly 200 days of rolling blackouts this year alone.
“Disruptions at this scale halt the economy, cripple business and deter any domestic or international investment. With the resignation of De Ruyter, it is very unlikely that this dire situation will improve, as some high-ranking members of the ANC want to make the public believe. The contrary can be expected if there is not a drastic change of mindset within the ANC leadership, followed by decisive action,” Parks said.
He said it was critical that competent ministers, directors-general and management of the SOEs be appointed.
“These must be people free of corruption and criminal allegations. The law enforcement agencies need to tackle the endemic corruption crippling many of these SOEs, and those implicated brought to trial. The SOEs need to have clear turnaround plans, and where necessary to be recapitalised. This includes saving the jobs of workers and not sending them to the unemployment queue,” Parks said.
Dirk Herman, Solidarity’s head of the Research Institutes, said, “As a case study the SAA/Takatso Consortium deal is not a bad thing in principle, but political intervention is always cause for concern.
“The government should take minority stakes in these organisations. The structures of some deals ultimately work out. Telkom is a case in point where the state’s minority stake is allowing the organisation to make some strides even though it’s really a small share in its space, it is the principle,” Herman said.
The National Union of Metal Workers of South Africa (Numsa) said it did not have a hardline on the matter yet, while minority players said it was an ill-conceived move as the government could not be the regulator, shareholder and operator of important institutions, without sullying the waters.
The hold over the economy in this decision and other concerns of an albatross, as newly elected ANC secretary-general Fikile Mbalula openly expressed possibilities of a reshuffle in crucial departments, such as the DPE presided over by Minister Pravin Gordhan; Trade, Industry and Competition Minister Ebrahim Patel’s portfolio and energy presided over by Minister Gwede Mantashe, among others.
Mbalula said on radio, “The president will have to look into his Cabinet, if he has to reshuffle minsters. He cannot afford to overlook some changes in the very near future.”
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