AD-HOC SELECT COMMITTEE ON LABOUR AND PUBLIC ENTERPRISES: 18 JUNE 2004

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AD-HOC SELECT COMMITTEE ON LABOUR AND PUBLIC
ENTERPRISES 18 JUNE 2004
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OUTLINE

• INTRODUCTION
• KEY STRATEGIC OBJECTIVES
• ACHIEVEMENTS
• KEY DELIVERABLES
• RELATIONSHIP WITH AD-HOC COMMITTEE
• CONCLUSION

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INTRODUCTION

• THE DEPARTMENT IS RESPONSIBLE FOR 7 SOES
• DENEL
• ESKOM
• TRANSNET
• SAFCOL
• ALEXKOR
• ARIVIA.KOM
• AVENTURA

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INTRODUCTION- CONT

• TOTAL ASSETS UNDER MANAGEMENT WORTH ABOUT R170
  BILLION
• EMPLOYEES MORE THAN 130 000
• DPE BUDGET FOR 2004/05 IS R75,9 MILLION
• THE POLICY FOR RESTRUCTURING SOES REMAINS THE
  SAME
• BUT THE STRATEGIC FOCUS WILL SHIFT TO ALIGNMENT
  AND GREATER OVERSIGHT OVER SOES
• EXECUTION OF MICROECONOMIC REFORM STRATEGY TO
  BE ACCELERATED
• FOCUS ON ENERGY, LOGISTICS, RESEARCH AND
  DEVELOPMENT, SKILLS DEVELOPMENT AND
• ACCESS TO FINANCE

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KEY ACHIEVEMENTS FIRST PHASE

• RAISED ABOUT R34 BILLION PROCEEDS FROM 1996-TO
  DATE
• CONTRIBUTED TO THE REDUCTION OF STATE DEBT
• ATTRACTED FOREIGN DIRECT INVESTMENT IN AVIATION
  AND TELECOMMUNICATIONS
• CONCLUDED A LANDMARK TRANSACTION WITH
  UNPRECEDENTED RETAIL OFFERING- TELKOM IPO
• COMPLETED TRANSACTIONS IN THE FORESTRY SECTOR
• INTRODUCED PROTOCOLS ON CORPORATE GOVERNANCE AND
  ESTABLISHED SHAREHOLDER COMPACTS WITH SOEs
• OBTAINED UNQUALIFIED AUDIT REPORTS FOR THE PAST
  THREE SUCCESSIVE YEARS

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KEY DELIVERABLES

• DISPOSE OFF NON-CORE ASSETS IN TRANSPORT,
  TELECOMMUNICATIONS, DEFENCE AND ENERGY
• FREIGHT DYNAMICS
• TRANSMED
• TRANSNET HOUSING
• FLEETCALL
• SPP
• IRENCO
• ESKOM FINANCE COMPANY
• MTN STAKE 5

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KEY DELIVERABLES

• BRING PRIVATE SECTOR AND BEE IN NEW CAPACITY
  ELECTRICITY GENERATION
• ACCELERATE PORTS RESTRUCTURING
• STRENGTHEN BALANCE SHEETS OF TRANSNET AND DENEL
• ANNOUNCE INVESTMENT PLANS AND FUNDING PLANS OF
  SOEs IN INFRASTRUCTURE
• TRANSFER SHARES SET ASIDE TO THE NEF
• FINALISE NEGOTIATIONS WITH THE COMMUNITY ON
  ALEXKOR
• DEVELOP NEW SHAREHOLDER MANAGEMENT FRAMEWORK FOR
  ALL SOEs

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KEY CHALLENGES

• FINALISE THE NPA BILL IN NCOP THIS YEAR
• STRATEGY ON SAFCOL, ARIVIA.KOM AND ALEXKOR
• LAND CLAIMS
• RECRUITMENT OF EXPERTS AND RETENTION OF SKILLED
  STAFF

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RELATIONSHIP WITH AD-HOC COMMITTEE

• EXECUTIVE ACCOUNTABILITY
• AS LAWMAKER NEED FOR CONTINUAL, STRATEGIC
  INTERACTION WITH EXECUTIVE
• COMMITTEE STRUCTURES OF PARLIAMENTARY BUSINESS
• STRATEGIC PLANS, BUSINESS PLANS AND ANNUAL
  BUDGETS
• NON-CONCURRENT FUNCTION
• AS AND WHEN MATTERS OF PUBLIC IMPORTANCE ARISE
• FUNDAMENTALLY PUBLIC ACOUNTABILITY

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VOTE 09 DPE BUDGET 2004/2005
NOTE A material portion of the 2002/2003 budget
was dedicated to the Telkom Initial Public
Offering (IPO), hence the significant differences
between that fiscal period and the more recent
ones, including this years budget.
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VOTE 09 DPE BUDGET 2004/2005
NOTE A material portion of the 2002/2003 budget
was dedicated to the Telkom Initial Public
Offering (IPO), hence the significant differences
between that fiscal period and the more recent
ones, including this years budget.
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Programme 2- Restructuring
Budget for the year ending 31 March 2005
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Programme 3 - Performance Monitoring
Benchmarking
Budget for the year ending 31 March 2005
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Programme 4- Policy Development
Budget for the year ending 31 March 2005
The Policy Development and Business Planning
Programme was initiated during the past fiscal
period. It did not have a stand-alone budget of
its own at the time. This is the first year that
it has been completely budgeted for.
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CONCLUSION

• THE POLICY ON RESTRUCTURING REMAINS THE SAME WITH
  A STRATEGIC FOCUS ON GREATER OVERSIGHT ON SOES,
  IMPROVE INFRASTRUCTURE INVESTMENTS AND THE IMPACT
  OF SOEs ON SKILL DEVELOPMENT, RESEARCH AND
  DEVELOPMENT, AND BLACK ECONOMIC EMPOWERMENT
• COORDINATE EFFORTS TO IMPROVE THE LOGISTICS,
  BRING DOWN THE COST OF BUSINESS, FACILITATE
  ACCESS TO FINANCE THROUGH THE NEF, PROMOTE PPPS,
  JOINT VENTURES AND CONCESSIONS
• BRING PRIVATE SECTOR IN BUILDING NEW CAPACITY OF
  ELECTRICITY
• AVAILABLE FOR STRATEGIC INTERACTION