Tag Archives: The Portfolio Committee on Planning

Committee concerned about centralisation of SOEs

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By BAKANG MOKOTO

9 July 2025 – The Portfolio Committee on Planning, Monitoring and Evaluation has expressed significant concerns regarding the centralisation of state-owned entities (SOEs) as outlined in the National State Enterprises Bill (B1-2024). During a meeting on Wednesday, the committee received a briefing from the National Treasury (NT) and the Financial Fiscal Commission (FFC) on the Bill, which aims to develop a strategic approach to enhancing the governance and operational efficiency of SOEs.

The Chairperson of the Committee, Teliswa Mgweba said National Treasury highlighted critical issues, particularly the proposed non-application of the Public Finance Management Act (PFMA) to the holding company and its subsidiaries, which could undermine transparency and accountability in financial management. Mgweba said NT cautioned that the centralisation model poses risks, such as increased political interference and the potential for state capture, emphasising the importance of ensuring that SOEs remain financially sustainable without undue reliance on public funds.

“In its presentation, the FFC stated that it does not support the Bill in its current form, noting that it fails to address longstanding governance concerns experienced over the past 30 years.

“The FFC recommended that the holding company be established within the National Treasury’s budget baseline, in accordance with Sections 213 and 216 of the Constitution. During the questioning phase, committee members raised significant concerns about the centralisation issues presented in the Bill,” she said.

Mgweba further said they argued that a centralised model could lead to a lack of transparency and accountability, making it more vulnerable to corruption and political interference. He added that members highlighted that consolidating oversight of SOEs under a single holding company might exacerbate existing vulnerabilities rather than mitigate them, potentially creating an environment where decision-making becomes opaque and less subject to scrutiny.

“Additionally, there were worries that centralisation could undermine the transformative goals for SOEs, distancing them from the necessary checks and balances that ensure equitable governance and public accountability.

“The committee members expressed a strong sentiment that the Bill, as it stands, does not adequately protect the interests of the public or ensure the effective functioning of SOEs. Members highlighted the importance of maintaining robust oversight mechanisms to prevent the erosion of accountability, particularly given the historical context of governance challenges within SOEs,” said Mgweba.

She said members voiced their commitment to ensuring that any legislative framework promotes transparency and fosters public trust, arguing that the proposed centralisation could lead to a concentration of power that is detrimental to democratic principles. Mgweba said while the National Treasury did not explicitly call for the Bill to be withdrawn in its current form, it acknowledged the necessity for reworking the legislation.

“The committee flagged the risk that the holding company could be controlled by multinational corporations, raising concerns that Parliament might enact a law that leaves the state powerless in managing public funds effectively.

“Members articulated a shared apprehension that the proposed changes could inadvertently enable the very issues the Bill seeks to address, further complicating the governance landscape for SOEs,” she said.

Mgweba said the committee also raised alarms about the fiscal risks associated with establishing the holding company, particularly the significant funding requirement of R615 million. She said members expressed scepticism regarding the feasibility of the innovative funding mechanisms proposed.

“Furthermore, committee members indicated that the Department of Planning, Monitoring, and Evaluation (DPME) appears to be circumventing the public procurement process, suggesting that the DPME’s approach could remove SOEs from the public procurement environment altogether.

“In response to the FFC’s presentation, the committee welcomed their directness, contrasting it with the more diplomatic approach taken by the National Treasury. Following a robust engagement among committee members regarding the next steps for the Bill, there was a prevailing view to pause its progress in light of the presentations received,” said Mgweba.

She said the committee resolved to seek further guidance and legal advice, as there was overwhelming sentiment among members to halt the process, despite the Bill already being before the committee.

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Financial constraints and vacancies at StatsSA

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By KEDIBONE MOLAETSI

1 July 2025– The Portfolio Committee on Planning, Monitoring and Evaluation expressed concerns about financial constraints and vacancies at Statistics South Africa (SA), which hampers its effectiveness as the national statistical agency. The committee said it was briefed by Stats SA, Brand South Africa (Brand SA) and the Department of Planning, Monitoring and Evaluation (DPME) on their annual performance and strategic plans.

The Chairperson of the Committee, Teliswa Mgweba said regarding vacancy rates, the committee was concerned that they impact the quality and timeliness of statistical products, as well as the agency’s ability to retain skilled personnel. Mgweba further said the committee urged StatsSA to develop a strategy for retaining skilled workers and to explore partnerships to enhance data collection and statistical capabilities.

“We also questioned if StatsSA’s infrastructure is fit for purpose to meet the demands of a technologically evolving world. We noted that the ICT systems are outdated and urged the entity to invest more in modernising its systems.

“Modernising ICT infrastructure is crucial for maintaining data integrity and improving operational efficiency. Following the DPME presentation, members emphasised the need to align the Medium-Term Development Plan with departmental budgets while improving capacity to address implementation challenges,” she said.

Mgweba further said they urged BrandSA to refine its performance indicators and targets so that the impact of its nation-branding is more quantifiable and effective. She added that acknowledging this, BrandSA vowed to refine its performance framework to showcase the entity’s impact better.

“The committee also raised concerns about BrandSA’s agility, particularly in its response to changes in socio-economic contexts, emphasising the need for partnerships and collaboration to address the evolving needs of all people in South Africa.

“Members were particularly interested in how BrandSA collaborates with other government entities, such as Government Communication Information Systems (GCIS) and the Department of Trade and Industry, to improve its nation-branding efforts and the strategies in place to counter negative perceptions of South Africa around the world,” said Mgweba.

She said the committee emphasised the importance of collaboration to ensure that the department and its entities support the country’s development agenda. Mgweba said the committee’s inputs and recommendations will now be consolidated into the Budget Review and Recommendations Report that will inform the upcoming budget vote debates.

Meanwhile, the Director-General of the Department, Dr Themba Mhlongo, acknowledged the necessity for stronger legislative frameworks to empower the department and ensure compliance from other entities.

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Committee concerned about vacancies at Stats SA

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By KEDIBONE MOLAETSI

7June 2025– The Portfolio Committee on Planning, Monitoring and Evaluation expressed concerns on Friday about financial constraints and vacancies at Statistics South Africa (SA), which hampers its effectiveness as the national statistical agency.

The Chairperson of the Committee, Teliswa Mgweba said they were briefed by Stats SA, Brand South Africa (Brand SA) and the Department of Planning, Monitoring and Evaluation (DPME) on their annual performance and strategic plans. Mgweba said regarding vacancy rates, the committee was concerned that they impact the quality and timeliness of statistical products, as well as the agency’s ability to retain skilled personnel.

“The committee urged Stats SA to develop a strategy for retaining skilled workers and to explore partnerships to enhance data collection and statistical capabilities.

“The committee also questioned if Stats SA’s infrastructure is fit for purpose to meet the demands of a technologically evolving world. We have noted that the ICT systems are out-dated and urged the entity to invest more in modernising its systems.

“Modernising ICT infrastructure is crucial for maintaining data integrity and improving operational efficiency. Following the DPME presentation, members emphasised the need to align the Medium-Term Development Plan with departmental budgets while improving capacity to address implementation challenges,” she said.

Mgweba further said the committee urged Brand SA to refine its performance indicators and targets so that the impact of its nation-branding is more quantifiable and effective. She added that, acknowledging this, Brand SA vowed to refine its performance framework to showcase the entity’s impact better.

“The committee also raised concerns about Brand SA’s agility, particularly in its response to changes in socio-economic contexts, emphasising the need for partnerships and collaboration to address the evolving needs of all people in South Africa.

“Members were particularly interested in how Brand SA collaborates with other government entities, such as Government Communication Information Systems (GCIS) and the Department of Trade and Industry, to improve its nation-branding efforts and the strategies in place to counter negative perceptions of South Africa around the world,” said Mgweba.

She said the committee emphasised the importance of collaboration to ensure that the department and its entities support the country’s development agenda. Mgweba said the committee’s inputs and recommendations will now be consolidated into the Budget Review and Recommendations Report that will inform the upcoming budget vote debates.

Statistician-General Mr Risenga Maluleke told the committee that there are over 720 positions, and this affects Stats SA’s ability to perform its core functions and its capacity to meet data needs for policy-making.

Meanwhile, the Director-General of the Department, Dr Themba Mhlongo, acknowledged the necessity for stronger legislative frameworks to empower the department and ensure compliance from other entities.

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Committee receives a brief from NEDLAC

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By REGINALD KANYANE

26 May 2025 – The Portfolio Committee on Planning, Monitoring and Evaluation received a briefing from the National Economic Development and Labour Council (NEDLAC) on the National State Enterprises (NSE) Bill. The committee said NSE Bill aims to centralize the management of state-owned companies’ shareholdings under a holding company, the State Asset Management SOC Limited, to improve operational efficiency, governance and alignment with the state’s developmental objectives.

The Chairperson of the Committee, Teliswa Mgweba, welcomed the presentation by NEDLAC and said it will deepen the committee’s understanding of the Bill’s broader policy and developmental institution. Mgweba said she was also hopeful that the NSE Bill will significantly transform the governance, ownership and the architecture of state-owned companies.

“The legislation will also strengthen the oversight mechanism, accountability and performance monitoring to promote a transparent and inclusive legislative process.

“The committee will invite different other stakeholders to make submissions on the Bill as part of the extensive consultation process and public participation,” she said.

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Committee welcomes brief from SEIA

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Picture: National Parliament in South Africa

By REGINALD KANYANE

24 May 2025– The Portfolio Committee on Planning, Monitoring and Evaluation welcomed the briefing it received from the Socio-Economic Impact Assessment (SEIA) on the envisaged centralized, state-owned holding company, which will oversee and manage a portfolio of strategic SOEs, aiming to improve their governance, streamline oversight, and promote commercial sustainability. In its recommendations to the committee, the SEIA said studies show that good governance was critical to the performance and viability of SOEs and this is also attributed to the country’s stance of tackling fraud and corruption.

For SOEs to optimally achieve their role to the country’s developmental agenda, the SEIA unit said, there is a need to strengthen the link between SOEs and the public developmental goals, improve incentives and enhance governance.

The Chairperson of the Committee, Teliswa Mgweba said some members of the committee expressed a concern that the process of establishing a holding company will be cumbersome and expensive. Mgweba said an amount of R615 million has been requested from the National Treasury by the Department of Planning, Monitoring and Evaluation to start operation of the holding company for the first three years.

“Thereafter, its operations will be funded from dividends to be received from subsidiaries. The committee told the SEIA unit that the risk assessment report lacked in the presentation the unit delivered to the committee.

“The committee told the unit to go back to do a deeper and wider analysis that should cover, among other things, longer term possibilities of viability, sustainability and socio-economic impact of the new model,” she said.

Mgweba further told the unit that it will be invited by the committee in a week’s time to come back to present the latest impact analysis report to the committee and the Department of Planning, Monitoring and Evaluation will also be invited. She added that they urged the unit to ensure that it comes back with a concrete and scientific report that covers the areas that were highlighted by members of the committee.

“We appreciate the briefing which the committee received from the unit and thank you for the great effort you made on its production. Ensure that you improve on it for the achievement of the objectives of the envisaged legislation,” stressed Mgweba.

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Planning Committee review submissions on National State Enterprises Bill

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By OBAKENG MAJE

14 March 2025 – The Portfolio Committee on Planning, Monitoring and Evaluation has been briefed on public comments from the submissions received on the National State Enterprises Bill [B1-2024]. The committee stressed the importance of grounding the legislation in clearly defined policy frameworks and aligning the proposed regulatory system for state-owned enterprises (SOEs) with well-researched international best practices from countries facing similar challenges to those in South Africa.

The committee agreed on a comprehensive programme of engagement with stakeholders, which include

National Treasury, the Socio-Economic Impact Assessment Unit (Presidency) and with NEDLAC. The committee will use its oversight week visit programme to visit key SOEs, including South African Airways, Eskom, Denel, Transnet and the South African Post Office.

The Chairperson of Portfolio Committee, Teliswa Mngweba said the committee will use its planned oversight visit to SOEs from 24-28 March 2025, to gain a clearer understanding of the challenges these entities experience to ensure that the National State Enterprises Bill is realistic and creates the envisaged practical operational standards. Mngweba said, moreover, the committee will explore the feasibility of an international study tour to analyse best practices in SOE regulation in countries such as Singapore, Malaysia, China and Denmark, coordinating with the Office of the House Chairperson regarding this initiative.

“The committee will consider holding public hearings on the National State Enterprises Bill across all nine provinces and seek guidance on appropriate scheduling,” she said.

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Portfolio Committee receives AFS from Stats SA and Brand SA

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Picture: The Stats SA logo

By REGINALD KANYANE

24 October 2024 – The Portfolio Committee on Planning, Monitoring, and Evaluation met yesterday to receive a briefing from Statistics South Africa (Stats SA) and Brand South Africa on their annual report for the financial year 2023/24.

During the meeting, committee members highlighted the challenges faced by Stats SA in the context of South Africa’s socio-economic climate, stressing the need for improved efficiency and the potential exploration of partnerships with private service providers to enhance data collection processes.

The Chairperson of Portfolio Committee, Teliswa Mgweba said discussions amongst the committee members revolved around the reliability of the 2022 census results, with committee members highlighting the importance of accurate demographic data for effective government planning and resource allocation.

“Concerns were raised about the undercounting and biases in the data, particularly regarding mortality and labour statistics. The committee urged Stats SA to consider the release of these critical statistics to enable comparative analysis with existing data.

“The committee voiced its concerns regarding Stats SA’s financial challenges, particularly the absence of a Chief Financial Officer (CFO). The committee highlighted that maintaining an unqualified audit opinion will become increasingly difficult without a CFO as effective financial oversight and accountability are compromised,” she said.

Mgweba further said the matter needs to be addressed speedily to appoint a CFO or look into a secondment to ensure the organisation can navigate its financial landscape more effectively. She added that, the members discussed the necessity of fostering collaboration between Stats SA and the private sector to enhance data collection efforts.

“Suggestions included incentivising participation through business partnerships and potentially offering discounts or rewards to individuals who contribute data. A significant topic of discussion was the merger between Brand SA and Tourism South Africa.

“Some committee members were of the view that there was duplication within the two entities. The committee recognised the potential benefits of a merger in creating a unified approach to promoting the country’s image domestically and internationally,” said Mgweba.

Meanwhile, in its response, Brand SA said there is no duplication and that its mandate is quite clear from Tourism South Africa’s.

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