2024 SONA & SOE Developments, SAA Repeal Bill (with Deputy Minister)

Video President Cyril Ramaphosa: 2024 State of the Nation Address (SONA) The Department of Public Enterprises (DPE) briefed the Portfolio Committee about issues emanating from the State of the Nation Address and gave an update on the latest developments at state-owned enterprises (SOEs). Leading the department in the briefings, the Director General, Ms Jacky Molisane, provided an overview of the progress and challenges that still face SOEs, particularly Eskom, Transnet, South African Airways (SAA), Denel, Alexkor, and the South African Forestry Company Limited (SAFCOL). Briefing the Committee on Eskom, Ms Molisane focused on the generation recovery plan, the unbundling of the entity into separate transmission and distribution companies, and efforts to reduce loadshedding. Committee members asked about the retraining of workers and the impact of repurposing power stations. Speaking on Transnet, DPE provided updates about the entity’s recovery plan and investments to upgrade port and rail infrastructure, corruption, aging assets, and cable theft. On the subject of SAA, the Committee was briefed on the entity’s emergence from business rescue and how it is expanding its network but said long term viability remains a concern. Also under discussion, were challenges at Denel and Alexkor, especially their financial affairs, governance and stabilisation. DPE also told the Committee that SAFCOL was able to operate independently without government support. The Committee welcomed the briefings but noted that such briefings on SOEs require a lot of time, and each entity needed a dedicated meeting. The Committee was scheduled to receive a briefing on the South African Airways Repeal Bill. However, the Bill has been withdrawn due to concerns that it will not be finalised on time.   The Chairperson said the Committee’s priority is to finalise the investigation into the sale of South African Airways to Takatso Consortium, as requested by the Speaker.