The Congress of South Africa Trade Unions (Cosatu) has given approval to the surreptitious disbandment of the State-owned enterprises (SOEs) portfolio which barely went noticed as President Cyril Ramaphosa announced that it would now report directly to the Presidency with reference to line departments on policy matters while government reviews its shareholder position in the entities.
Cosatu Spokesperson Matthew Parks said it had long advocated for the department's closure as part of streamlining the government and ensuring greater coherence.
Having two or three ministers covering one entity just created chaos. The Department of Public Enterprises only supervised seven state-owned enterprises and so its continuation did not make sense, he said, pointing toward the SOE shareholder management bill, tabled at Nedlac and now before Parliament, as the best outcome as it would establish a council to oversee the entities.
This is as the South African Wind Energy Association (SAWEA) said it supported the separation of Mineral Resources and Energy into two separate ministries as it enables the country to prioritise energy security with a special focus on electricity.
SAWEA CEO, Niveshen Govender, said challenges remain a concern, particularly ahead of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Bid Window 7 submission deadline and the dwindling grid capacity in wind-rich areas.
