Statement by Minister Collins Chabane on the terms of reference and review framework and methodology of the Presidential State Owned Enterprises (SOE) Review Committee, Imbizo Media Centre, 120 Plein Street, Cape Town
12 Oct 2010
Good morning ladies and gentlemen of the media
Chairperson of the Presidential SOE Review Committee, Riah Phiyega
President Jacob Zuma, on 12 May earlier this year announced the appointment of the Presidential State Owned Enterprises Review Committee to review the role of SOEs in the country.
The appointment of the Review Committee is a response to the acknowledgement that there is a need to strengthen the role of SOEs to ensure that they respond to a clearly defined public mandate and support the developmental state aspirations of government.
The president appointed the Review Committee guided by the Polokwane resolution of the ruling party and the Medium Term Strategic Framework (MTSF) 2009 to 2014. The MTSF states the need for the review of state owned enterprises as part of the economic transformation agenda of government.
The MTSF further states that while these entities remain financially viable, SOEs, development finance institutions as well as companies in which the state has a significant shareholding must respond to a clearly defined public mandate, and help government to build a developmental state.
SOEs form a significant portion of South Africa's vital industries that drive the economy. Inputs such as electricity, transportation and telecommunications are dominated by SOEs.
These sectors are principal drivers of the formal sector of the economy, and provide for the bulk of economic growth. SOEs are the principal entities that deliver many social goods and services to ensure quality of life of all South Africans.
Given the importance of the SOEs, including among others the need to sustain job creation, skills development and retention as well as contribution to the governments developmental and transformation agenda, it has become necessary to review them.
The move to review them recognise the need to inculcate alignment, efficiency and viability within them while concurrently ensuring that the entities fulfil their public mandate through ensuring that social and infrastructural goals are met.
The proper governance and control of SOEs is an important component. The magnitude of this task cannot be overestimated, given their aggregate size and their contribution to the gross domestic product (GDP).
There are estimated 300 state owned enterprises with nine reporting to the Department of Public Enterprises. The rest of other institutions report to various ministries, provinces and municipalities.
The review of state owned enterprises will in the long term strengthen government's oversight, but more specifically the review process shall facilitate the government's efforts to achieve the goal of aligning them to the developmental agenda.
Whilst recognising that there have been reforms and some improvements in the past, the current national debate on the state and future of SOEs suggest that there is a need to review and make cardinal recommendations on their roles and relationship with government.
The committee was appointed to review all entities including SOEs, agencies, utilities, as well as companies within which the state has significant shareholding. The scope of the review covers all three tiers of government being national, provincial and local.
There are five work streams through which the review process will be undertaken. Each work stream will be chaired by a member of the Review Committee and may include other technical experts. The work streams are:
- development and transformation
- ownership and governance
- viability of business cases
- strategic and operational effectiveness and
- research and development.
The president gave the Review Committee three months to familiarise itself with the mandate and assist government to ensure that water tight and all encompassing terms of reference and review framework and methodology were developed to guide this important work. The review committee has been given 12 months to conclude its work, which commenced on 1 September 2010.
The Review Committee will conduct the review and make its recommendations to the president. The committee will provide a six months report to the president in February 2011 giving a progress update of the review and where necessary making recommendations. The final report shall be submitted to the president in September 2011.
Cabinet and government have already given their support to this process; I now wish to call on all SOEs, entities and companies which government has a stake to support the Review Committee to ensure that this process is completed within reasonable period.
The Presidential Review (PRC) committee
The PRC is a 12 Person Committee – permanent and non-permanent members. Ms Riah Phiyega was appointed to be chairperson of the PRC committee; Mr. Glen Mashinini is the Deputy Chairperson. They are supported by 10 other members of the committee.
The following are the summary profiles of the members:
Ms Nombulelo Mkhumane
Ms Nombulelo Mkhumane has extensive professional experience of the financial sector. A B.Comm graduate, she is currently an Associate in Research at the National Treasury. She previously served as the Chief Financial Officer (CFO) of the South African National Parks. She was also the CFO for the Department of Public Works in the Limpopo province. Her demonstrated leadership in achieving quality results in these institutions are hallmarks of her outstanding career. A former board member of the Roads Agency Limpopo and a current member of the Limpopo Economic Development Enterprise, her strong financial acumen across the corporate and public sectors ensures that her professional expertise and experience makes her an outstanding candidate.
Ms Riah Phiyega (Chairperson)
Ms Mangwashi “Riah” Phiyega is a past Absa Group Executive for Corporate Affairs. Whilst at Absa she chaired the AllPay Boards for Gauteng and Eastern Cape, was also a board member of Absa Actuaries and Trustee of the Absa Foundation. She spent a significant time of her career life in Transnet occupying diverse positions in various divisions. At Transnet she was Group Executive Corporate Affairs and a member of the Executive Committee as well as an attending member of the board. She also served General Manager for Ports and Corporate Affairs at the National Ports Authority leading the team of all Port Managers. She was Director of the National Council for Child Welfare and also chaired the National Welfare Forum. She is currently a board member of the Southern Africa Trust and chaired the Road Traffic Management Corporation Task Team appointed by the Minister of Transport. Other previous national roles include among others being a Commissioner for the Road Accident Fund and a board member of the 2010 Bid Committee.
Mr Mafika Mkwanazi
Mr Mafika Mkwanazi has a long and illustrious career. This BSc graduate was a math and electronics teacher. He graduated in Electrical Engineering from the University of Natal in 1984 and worked at the Kriel Colliery as an engineer. He has served in numerous professional roles including as CEO of Transnet, Chairman of South African Airways (SAA), Propnet, V&A Waterfront Holdings and Spoornet. He is a former Director of the Industrial Development Corporation and CEO of Metrorail. He currently serves as a non-executive director of the Nedbank Group, Nedbank, Sefanutti and Stocks, and MSC South Africa among others. He is also the non-executive chairman of Hulamin.
Mr Deon Crafford
Mr Deon Crafford is a Masters graduate in Psychology who started his career in the South African National Defence Force (SANDF) Medical Services, assisting with the integration of conventional and liberation forces. He then moved on to Deloitte Consulting where he served as a partner in the consulting division. He was the lead partner for Human Capital and also acted as the lead client service partner on both Transnet and Sasol. He joined Barnstone Holdings in 2006 as a partner. His extensive experience across the public sector, state-owned enterprises, mining, resources and energy, and financial industry has blended a unique expertise in human capital and corporate strategy.
Mr Pramod Mohanlal
Mr Pramod Mohanlal’s experience and ability in the financial services sector is both admirable and inspiring. A graduate of the Stanford Executive Programme, he has spent the past eleven years honing his skills in the banking sector. His experience at Absa includes the areas of credit, marketing, e-business, information management and home loans. He is currently a Nedbank Executive in the home loans division, focusing on strategic planning, production innovation and management, customer management and the management of non-market affairs.
Mr Glen Mashinini (Deputy Chairperson)
Mr Glen Mashinini has had a distinguished career in the public and private sector. An anti-apartheid activist he cut his teeth in the retail management and hospitality industry at Allied Foods Limited Australia. He thereafter worked as a consultant in the arts and culture industry and was also the Chairperson of the Community Arts and Culture Panel of the Western Australia Department for the Arts. In 1993 he was appointed as Director of Education and Development at The Playhouse Company in Durban. His transformation initiatives saw him appointed to the Arts and Culture Task Group appointed by the then Minister of Arts and Culture. In 1998 he joined the Independent Electoral Commission as the Deputy Chief Electoral Office responsible for administration nationally. He is presently the CEO of Nullarbor Management Consultancy Services.
Dr Takalani Madima
Dr Takalani Madima is an advocate with a wide range of experience in the legal arena. He joined the Legal Aid Bureau as a Legal Assistant in 1984. After completing his PhD in Law at the University of Essex in 1993 he was admitted to the Society of Advocates in 1994. He completed pupilage at the Johannesburg Bar in 1996 and was thereafter appointed as a Senior Lecturer in Labour Law at the University of South Africa. At the same time he also practiced law as a member of the Johannesburg Bar. It was also during this period that he was appointed the Evidence Leader in the Semenya Commission of Inquiry in the then Northern Province. In 1997 he joined Transnet Limited as its Chief Legal Adviser and thereafter serving as its General Counsel. Dr Madima obtained an Executive MBA degree from the University of Cape Town in 2002. In June of 2004 he resumed private practice at both the Johannesburg and Cape Bars. He has also served as an Acting Judge in the Cape High Court for two terms in October – December 2008 and again in January – March 2010. When time permits, he teaches at the University of Cape Town where he is currently an Adjunct Professor in the Department of Commercial Law. Dr Madima is the Chairman of the Western Cape Gambling and Racing Board. He also serves as a Part-Time Member of the Competition Tribunal.
Ms Gugu Ngcobo
Ms Gugu Ngcobo counts a degree in Education among her qualifications. With over 30 years experience in the government and private sectors she brings both her operational and strategic expertise. As Deputy Chairperson of the Board from 1993 to 2001 she was intimately involved in the transformation of The Playhouse Company. As Chairperson she was instrumental in raising funds for the construction of the Ntuzuma Arts Centre. This hands-on approach has characterised her tenure as the CEO of the KwaZulu-Natal Arts and Culture Trust. As founder and chairperson of the Thinta Thinta Telecoms she has gained valuable experience in the communications industry.
Professor Mbulelo Mzamane
Dr Mbulelo Mzamane was once described by former president Nelson Mandela as a “visionary leader, one of South Africa’s greatest intellectuals.” He became the first post-apartheid Vice Chancellor and Rector of the University of Fort Hare. Among his academic achievement is a PhD in English Literature. Dr Mzamane has devoted his academic career to teaching in various fields including post-colonial literature, creative writing and African Studies. He was a board member of the Heraldry Council and the SABC. He also served as Chairman of the Institute for the Advancement of Journalism. He is currently the Director for the Centre for African Literary Studies at the University of KwaZulu-Natal and is Professor in the School of Literary Studies, Media and Creative Arts.
Ms Swazi Tshabalala
Ms Tshabalala holds a BA Economics degree and a Master of Business Administration (MBA) from US universities, and has been CEO of Industrial Development Group since 2006. She is formerly Transnet’s Group Treasurer, and the General Manager (Corporate Services) of Transnet Port Authority (formerly National Ports Authority) where she amassed a wealth of experience in the management and financing of State Owned Enterprises. Tshabalala is a non-executive Director of Liberty Holdings Limited and founder member of the Association of Black Securities and Investment Professionals (Absip).
Ms Dawn Marole
Dawn Marole, who is a household name in business management and financial services, has held directorships in several companies including Kumba Resources, Premier Foods, Tsogo Sun and JP Morgan. The current chairperson of the People Opposing Women Abuse (POWA) has been a member of the Policy Board for Financial Services & Regulations and the Export Advisory Board which reported to Ministers of Finance and Trade and Industry respectively. She holds an MBA from the University of Boston, USA, amongst other qualifications.
No stranger to the country’s socio-economics, the Chief Economist of the Industrial Development Corporation (IDC) Lumkile Mondi is a graduate of the Universities of Illinois and Witwatersrand. He continues to work with a wide range of stakeholders to shape South Africa’s political economy to benefit more people.
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Issued by: The Presidency
12 Oct 2010
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