Gordhan: Not all SOEs suitable for holding company - just the 'strategic' ones

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New legislation will be introduced into Parliament to reform ownership and control structures of SOEs. There will be a process to prepare entities to enter the holding company, and those that need restructuring will be restructured, Gordhan said.

The ownership and control structures of state-owned enterprises are being reformed.

Gordhan gave brief remarks on the holding company during a meeting with Parliament’s Select Committee on Public Enterprises.This is the beginning of a five- to 10-year process to consolidate strategic state-owned enterprises , not all SOEs. While there will be any number of small SOEs that will sit in departments, the strategic ones will be in the holding company itself.

Briefing MPs on the progress in unbundling Eskom into three separate companies for generation, transmission and distribution, Gordhan said that Eskom"lacked urgency" to get on with the transition and that he had asked it to revise its timelines, which he described as"elongated." Most advanced is establishing the National Transmission Company of SA .

 

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