# SOE Bill

- Link: https://dearsouthafrica.co.za/soe-bill/
- Published: 2025-01-15T12:56:08+02:00
- Author: dearSA

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![The Portfolio Committee on Planning, Monitoring and Evaluation invites you to 
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### The Portfolio Committee on Planning, Monitoring and Evaluation invited the public to comment on the National State Enterprises Bill

The Bill aims to establish the State Asset Management SOC Ltd (SAMSOC), a holding
company that will oversee strategic SOEs. SAMSOC will be 100% state-owned and tasked
with providing coordinated oversight and monitoring of performance for all subsidiary
companies.

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### Committee on Planning Briefed on National State Enterprises Bill

The Portfolio Committee on Planning, Monitoring and Evaluation was briefed by the
Department of Planning, Monitoring and Evaluation (DPME) on the National State Enterprises
Bill.

The Bill aims to establish the State Asset Management SOC Ltd (SAMSOC), a holding
company that will oversee strategic SOEs. SAMSOC will be 100% state-owned and tasked
with providing coordinated oversight and monitoring of performance for all subsidiary
companies. This model will separate the State’s ownership functions from policy-
making and regulatory roles, minimising conflicts of interest and promoting coherent
corporate governance standards.

The committee recognises the vital role that State-Owned Enterprises (SOEs) play
in driving economic growth and providing essential services such as electricity,
transport, water, and telecommunications. The committee was of the view that operational,
financial, and governance challenges faced by these entities, exacerbated by issues
of state capture and corruption, have significantly hindered their effectiveness.

The Bill emphasises the importance of governance and accountability mechanisms to
ensure the professionalisation and integrity of SAMSOC and its subsidiaries. Members
of the committee raised concerns regarding the composition of the boards for SOEs,
particularly about the inclusion of executive members in the selection panels.

Some members of the committee indicated the potential for political bias and the
undermining of independence were critical points of contention. In response, the
DPME assured the committee that the selection process would prioritise competence
and experience, with a commitment to reducing political interference.

The role of Parliament in overseeing the SOEs was another focus in the question 
and answers. The committee expressed the need for clearly defined guidelines regarding
Parliament’s authority to hold entities accountable. The DPME told the committee
that the legislation would include provisions for regular reporting to Parliament,
enabling ongoing scrutiny of SOE performance and decision-making processes.

Concerns about the implications of the draft legislation on the Public Finance Management
Act (PFMA) were highlighted. The committee highlighted the potential risks of financial
mismanagement. In response, the DPME clarified that essential PFMA principles would
be retained within the new framework, ensuring that SOEs operate within established
financial accountability guidelines.

The involvement of the Presidency in the governance of SOEs sparked discussions 
about the balance of power and the potential for undue influence. The DPME said 
that while the Presidency would have a significant role in appointments and oversight,
the legislation would safeguard the independence of SOE boards, with a focus on 
merit-based appointments.

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