The Inter-Ministerial Committee on State-Owned Companies (SOC) Reform has updated South Africa’s Cabinet on progress in the work it has done to ensure that all State-owned entities are efficiently run and financially viable.
The SOC reform committee, chaired by Deputy President Cyril Ramaphosa, briefed the Cabinet on its progress at the two-day Cabinet meeting held earlier this week in Cape Town.
“A suite of decisions was taken to pursue the central policy objective of strengthening SOCs to enable them to meet their developmental objectives,” the Cabinet said in a statement Thursday.
The decisions taken by the Cabinet included:
* Cabinet endorsed a Private Sector Participation framework for infrastructure delivery, which will guide collaboration between SOCs and the private sector;
* Cabinet adopted the guideline for the remuneration and incentive standards for directors of SOEs;
* Cabinet endorsed the broad thrust of a guide for the appointment of boards and executive officers, for which, the Department of Public Service and Administration will undertake a consultation process with provinces and municipalities, before Cabinet approval;
* The first draft of a new government shareholder policy was recommended for further consultation. This will culminate in the promulgation of an over-arching SOC legislation, and;
* The National Treasury developed a proposal for determining and costing developmental mandates of state enterprises. The introduction of this approach will help streamline commercial and non-commercial activities of SOCs.
“These [decisions] better position the SOCs to contribute towards the implementation of the National Development Plan, building infrastructure, growing the economy, expanding industry, helping develop high-end skills, creating jobs and advancing other transformation objectives,” Cabinet said.
Source: NAM NEWS NETWORK.