Select Committee commends dept for no bailouts to SOEs


By REGINALD KANYANE

27 November 2024 – The Select Committee on Agriculture, Land Reform and Mineral Resources met yesterday with the Minister of Mineral and Petroleum Resources, Gwede Mantashe, the Department of Mineral and Petroleum Resources and the Department of Electricity and Energy.

The meeting provided an in-depth understanding of the mandates, functions and responsibilities of the departments and their respective entities. During the discussions, the committee commended the department for its outstanding efforts in ensuring the financial stability of its State-Owned Enterprises (SEOs) over the past six years, for which no bailouts were required.

The Chairperson of the Committee, Bones Modise said this achievement reflects a strong commitment to fiscal responsibility and effective management, reinforcing the resilience of our SOEs in the face of economic challenges. Modise said a significant concern was the ongoing issue of illegal mining, recognised as a countrywide problem affecting various regions across South Africa.

“Members of the committee highlighted the need for robust regulations to address this pressing issue effectively. Mantashe firmly stated that illegal mining is a criminal activity rather than a mere regulatory violation. He stressed that law enforcement involvement is crucial in tackling this challenge, as it poses serious risks to the economy and community safety.

“The committee also sought clarity on the future of South Africa’s energy supply, particularly regarding the transition from coal to gas and potential partnerships with Mozambique and Russia for gas supply. Additionally, members inquired about the current status of oil and gas exploration along the West Coast, stressing the importance of considering the implications for local communities and environmental sustainability,” he said.

Furthermore, Modise said the discussions highlighted the department’s need to enhance its efforts in addressing historical inequalities within the mining sector. He added that members called for strategies that promote historically disadvantaged groups’ participation and ensure that sector benefits are equitably distributed.

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