The DA has rejected the proposed DPE plan to create an investment SOE to manage other SOEs and report to the president, noted in media reports.
On Thursday, 16 September 2021, the Democratic Alliance’s (DA) Shadow Minister of Public Enterprises, Ghaleb Cachalia issued a statement claiming that President Cyril Ramaphosa has failed his first key test on structural reform with the proposed new state-owned enterprise (SOE).
Cachalia noted that according to media reports, the Department of Public Enterprises (DPE) plans to create a new investment SOE to help manage other SOEs, with a direct reporting line to the office of the president.
Cachalia also expressed that the DA rejects this proposed plan, stating, “Ramaphosa’s much vaunted push for structural reform was clearly a mirage because, not only does he want to keep dysfunctional SOEs plugged into the state for endless bailouts, his ANC government had no intention of opening up the SOE sector to private investment.”
See the post below.
— ghaleb cachalia. MP (@GhalebCachalia) September 16, 2021
What will the proposed investment SOE be called?
Cachalia noted that media reports suggest that the DPE is working on a plan to create the investment company and call it the Asset Management State Owned Company. The company would manage government’s stakes in SOEs such as Eskom, Denel and Transnet.
Why has the DA rejected this new investment SOE?
The party rejected the proposed idea noting that it only confirms how the government has no intention of opening up the SOE sector to private investment. The DA also believes that this will only contribute to taxpayers’ continued endless SOE bailouts.
What has the DA attributed the failures of SOEs to?
The DA believes SOEs have failed due to them being at the heart of state capture during the years of Jacob Zuma’s time as president. The party also believes that denying the private sector from investing in SOEs would not help.