State Owned Enterprises - there's hope on the horizon

| 0 Comments
Government commission on SOEs.jpgMore than 300 parastatal organisations, or state-owned enterprises (SOEs), will be put under the microscope in the next year. Many of them are really struggling, like the SABC, but there are some that are regarded as leading lights, like the Development Bank of South Africa, Elaine Porteous tells this month's SmartProcurement.

A presidential review commission has just been set up by the government to review the state of their operations. The good news is that private sector experts and professional business people have been recruited to the team which must report back in a year’s time.

“The starting point is to establish what state our parastatals are in,” says Riah Phiyega, chairperson of the review. In the 1990’s the SOEs were “corporatized” meaning that they were to be run on business lines with Boards and corporate governance but with possible government funding and subsidies.

The original intention was to “delink parastatal operations from bureaucratic and political processes,” notes Iraj Abedian, a well-known economist and one of the review commission members. He notes that one of the current problems is that SOEs have multiple lines of reporting and accountability.

Phiyega says a number of matters were at issue such as “would changes to the operating environment improve SOE performance, or was wholesale change of ownership necessary?” Raymond Parsons, deputy CEO of Business Unity SA, one of the 12 members, says that there may be scope for rationalization.

The 12-member review committee has been given a very clear mandate of 21 issues to investigate. One big challenge is to decide to what extent government should extend or reduce its role in managing the SOEs. They also need to answer some tricky questions relating to staff recruitment and remuneration, a current hot potato. Also on the agenda is the relationship and collaboration between ministries to achieve SOE objectives which are not working effectively.

Elaine Porteous Feb2010.jpgElaine Porteous is a contributing editor to SmartProcurement. Email her on editing@smartprocurement.net

This article was compiled from the Financial Mail report dated October 22. 2010 and from www.fin24.com. Details of the brief to the review committee are found in:
http://www.fin24.com/Economy/Committee-to-review-parastatals-20101012

Leave a comment


 

 

Career opportunites

Tutor and Coordinator

  • Gauteng Operations, Planning & Inventory Permanent Procurement Management Supplier / Business Development
Purpose of the job: To plan, coach, advise

Commodity Manager

  • <500 000 Commodities Gauteng Procurement Management
Are you a Commodity Manager looking for the

Supply Chain Professional

  • <500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Supply Planning

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer Procurement Consultant
Are you an Industrial Engineer looking to make

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Supply Chain
Seeking vibrant industry specific individuals seeking new opportunities

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for an Operations Manager to take into

Supply Chain Systems Administrator

  • >500 000 Gauteng Procurement Management Strategic Sourcing Supply Chain
One of South Africa's leading, mining companies is

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Procurement Management
Are you an experienced Logistics Manager looking for

Continuous Improvement Manager

  • >500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Warehouse Assistant

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory
I am currently looking for ambitious Demand Planner,

Internal Procurement Officer

  • <500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Position Available: Internal Procurement Officer Status : New ...More

Supply Chain Officer

  • <500 000 Gauteng Procurement Officer / Specialist Supply Chain
Seeking dynamic candidates to take to the market

Supply Chain Planner

  • <500 000 Free State Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Senior Buyer

  • >500 000 Buyer Gauteng Procurement Management
Tech-Pro specialises in placing professionals in the Supply

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer
Tech-Pro specialises in placing professionals in the Supply

Warehouse Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Supply Chain
Seeking hands on individuals that come from an

Manufacturing Purchasing Specialist

  • >500 000 Procurement Officer / Specialist Supply Chain Western Cape
A leading auto manufacture company based in Cape

Procurement Sourcing Specialist

  • <500 000 Gauteng Procurement Consultant Strategic Sourcing
A Leader in the Supply Chain industry is

Planning Manager

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for Planning Managers to take into the