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Department of Public Enterprise Minister, Alec Erwin, on budget presentation statement to the portfolio committee of public enterprise
27 February 2008
Cape Town - The Department of Public Enterprises presented its 2008 to 2011 Strategic Plan and Financial overview to the Portfolio Committee on Public Enterprises today. The budget presentation which ends on Friday delineates the core focus areas of the department's activities and allocation of resources.
Minister Alec Erwin detailed focal areas of the department's resource allocation and key projects. With regard to the energy situation, projects on the demand side management and co-generation are being fast tracked to stabilise the national energy system and move away from the current emergency situation. Eskom would need to speed up their build programmes and contracts with Independent Power Producers (IPPs) to ensure adequate electricity supply.
Government will continue to hold a 100% shareholding in Denel, with foreign and local equity partnerships formed at subsidiary level. The further restructuring of Denel is an immediate priority. Members of the committee were further informed that South African Airways (SAA) has made significant progress in terms of implementing its turnaround strategy and the airline must continue to focus on the reduction of costs. Potential land claims in areas where Komatiland Forests Limited (KLF), a subsidiary company of Safcol, operate will need to be finalised as a priority. The department will leverage the sale of KLF for community empowerment, a strategy employed with great effect in Alexkor (the state owned diamond company) with the Richtersveld Settlement Agreement signed in December 2007.
In addition, progress in the transfer of the land and establishing the Pool and Share Joint Venture (PSJV) in the land claim is an equally high priority.
Following Minister's address, the Director-General, Ms Portia Molefe gave a detailed presentation on the department's priority projects and planned activities for each enterprise that report to the department.
Issued by: Department of Public Enterprise
27 February 2008
Source: Department of Public Enterprise, (http://www.dpe.gov.za)