Less than 10% of loot recovered

The state has recovered R5.4bn, including R2.9bn in cash, out of an estimated R57bn stolen during the state capture era, the presidency said on Wednesday, upon releasing a progress report on implementation of the recommendations arising from the state capture report.

The department of public enterprises is refining the National State Enterprises Bill on the basis of public comments received, including in relation to board appointments at stateowned enterprises (SOEs), says public enterprises minister Pravin Gordhan.

The bill, which provides for the establishment of a stateowned national holding company under which strategic stateowned enterprises (SOEs) will fall, was published for public comment in mid-September.

The bill gives effect to the recommendations of the Presidential SOE Council’s recommendation that SA adopt a centralised shareholder model, to improve the management and oversight of SOEs.

Gordhan was replying in writing to a parliamentary question by DA MP Farhat Essack, who wanted to know whether the government had any plans to establish a standing and oversight committee that would apply transparent appointment criteria and processes — including independent public nominations, for appointing boards and executives for SOEs — to improve governance and address “the scourge of cadre deployment”.

Essack said this was in line with the recommendations of the Zondo commission of inquiry into state capture.

Gordhan said that central to the process of refining the bill was to establish a comprehensive and inclusive framework for the appointment of boards within SOEs. “The envisaged revisions seek to go beyond a mere legal framework.

The department aspires to codify a board appointment process that embodies the principles of transparency, equity and fairness.

By emphasising these core values, the department aims to instil a robust and accountable mechanism that stands as a testament to the commitment to good governance and stakeholder inclusivity,” Gordhan said.

“The envisaged processes for appointing board members to SOEs are expected to be comprehensive, designed to uphold transparency, fairness, and meritocracy.

This will necessitate a thorough evaluation of candidates based on qualifications, experience, and alignment with the strategic objectives of the relevant SOEs, said the minister.

Replying to another question, by DA MP Ghaleb Cachalia, on the role of public partnerships to improve the performance of SOEs and whether he would encourage these, Gordhan said that the government and Transnet were promoting private sector participation and the introduction of private capital in various projects.

According to the information received by Gordhan from Transnet, the parastatal aims to improve collaboration with the private sector in a bid to address its operational challenges. “Transnet believes that private sector partnerships (PSPs) are critical to our future and will provide the organisation with access to the additional skills, human resources, and capital required to reposition it,” he said in his reply.

This collaboration could be seen in the introduction of private train operating companies on the freight network. In April 2024, the process of integrating private train operating companies will be formally initiated by inviting interested parties to acquire available slot capacity on the network.

The collaboration was also evident in the deal for a terminal operator from the Philippines to develop and upgrade the Durban Container Terminal Pier 2.

“While most private sector partnerships are long-term initiatives with benefits expected in the next three to five years, significant progress has been made in the development of these initiatives,” said Gordhan.

In reply to a question by DA deputy spokesperson on trade and industry Mathew Cuthbert, Gordhan said that R7.2bn would be spent on the ports of Cape Town, Saldanha, Boegoebaai, Durban and Gqeberha between 2024/25 and 2026/27.