Off the wire
• Roundup: Scientists in high-yield rice pursuit to feed Africa  • Corruption fuels poaching in East Africa: report  • Bank of Communications net profit up 0.9 pct in 1H  • Beijing to expand cultural, creative industry  • Cargo train services launched between Nantong and Afghanistan  • Indonesian central bank expects inflation to stay below 3.5 pct this year  • Barcelona signs five-year contract with Cillessen  • Chinese leaders meet Olympic delegation (updated 2)  • News Analysis: Controversy persists over Cote d'Ivoire's proposed new constitution  • Poland issues 3 bln yuan panda bonds in China  
You are here: 　 Home

S.African Presidency defends new presidential body on state-owned enterprises

Xinhua, August 25, 2016 Adjust font size:

There is nothing sinister or new about the establishment of the Presidential State-Owned Enterprises (SOE) Coordinating Council, the Presidency said on Thursday.

The council was announced by Minister in the Presidency Jeff Radebe, at the conclusion of a cabinet meeting earlier this week.

There has been intense speculation since the announcement, with some commentators and journalists suggesting some sinister motives behind the establishment of the council, according to the Presidency.

The Mail & Guardian newspaper said on Tuesday that the move could be seen as a strategy to neutralise Deputy President Cyril Ramaphosa, who has since 2014 had the political oversight of the SOEs. It will also give Zuma more say in as far as the bailing out of parastatals is concerned.

In the past there has been tension between Zuma and Finance Minister Pravin Gordhan regarding the direction of SOEs, the report alleged.

"Such speculation is baseless and false," the Presidency said in a statement.

The recommendation to establish a SOE Council of Ministers was made by the Presidential Review Committee (PRC) on State Owned Enterprises which was appointed in 2010. The PRC's recommendations were approved by Cabinet in April 2013.

Zuma appointed the Inter-Ministerial Committee (IMC), which is chaired by his deputy Ramaphosa, to oversee the implementation of the PRC's recommendations. In the recently held cabinet meeting, the IMC recommended that the Presidential SOCs Coordinating Council be established to give effect to the PRC's recommendation of a SOE Council of Ministers.

"As the statement issued by Minister Radebe a few days ago indicates, the Presidential SOCs Coordinating Council is one of the measures that are being introduced as part of a comprehensive overhaul of the shareholder model of State-Owned Companies in order to improve their performance," presidential spokesperson Bongani Ngqulunga said.

One of the reform measures currently being developed by the IMC is the establishment of a Presidential SOCs Coordinating Council, which will allow for better oversight and coordination of state owned companies, according to Ngqulunga.

This measure is part of a comprehensive overhaul of the shareholder model of State-Owned Companies being led by the IMC in line with the recommendations of the Presidential Review Committee on State Owned Entities, he said. Endit