Pravin Gordhan tables Public Enterprises budget vote



[Applause] horrible house J my deputy minister Molly the members of the new portfolio committee led by its chairperson mr. Kayama che why are you rising honorable My dear sir I rise on rule 78 and 79 in a concurrent application yes I'm listening madam chair as members of parliament we took an oath off we took an oath and say here another poll began just just ain't there please you can't sit down there's no check on your member is standing on a point of order just be quiet let me listen to the point of order you said you are standing on rule nine can 78 I repeat myself I say I rise in terms of rule seven eight and seven nine in the current application is yes do that that's rented himself a costume out yes we see no we saw no need to listen to a constitutional complaint unfortunate I'm not going to listen to you that's a point of debate another one might yes honourable might just please take your seat order to not allow you to address this can I respond to you can I respond to you please honourable members please be quiet honorable Matthias you must raise a point of order that thing is not a point of order as a point of debate whatever you are saying when a rebel Blair purse I'm talking to him so that is not sustained continue honourable minister and I will take thank you gesture yes cannot rule on a point of further you have not listened out no I listen to you you are good in speech I'm not going to listen to your speech I need a point of order point of origin that before us technicals too is not eloquent just now I'm asking you for the last time take your seat or leave the house leave the house owner please continue Honorable Minister honourable house chair cabinet colleagues portfolio committee a point of order on a point of order in a few days on a point of order house champions would remember my tears he have raised datavu and you check person you are not listening you did not even allow him to speak and finish you just ejected and you're just not listening this man is not going to speak today it's not gonna happen it's not going to happen and we're not going to leave the house we would swear I'm not leaving the house no he's not going to speak today he's not going to speak is delivered what's happening with a mic may I please say this honourable members politely so this member that is in front of us is a member of the National Assembly and at the same time he's our minister of public enterprise if we are not I'm still talking if you are not going to listen to the minister you have you can go we are not going to be we know please take your seats so you are not going to take your seats take your seat let me tell you what the point of order is the point of order is on rule 92 read it but yes yes based on the rules of this house because I don't know any Marinaro c'mon honorable uncle Ronnie thank you for sitting down whoever stands on the same meta will have to leave us in peace vulnerable honorable members of the e FF may ask this question is that all what all of you are saying that he will not speak thank you very much all honorable members of the e FF please leave the house what you are doing is unlawful isn't procedural we are not a group here we're individual members of parliament and if you want to eject us from this house you are compelled by the rule of this house to name us and until you do that you have no authority whatsoever to treat us the way I will start with you honorable Matthias honorable Matthias you are you saying the Honorable Minister is not going to speak here I need the answer I'm out [Applause] [Applause] all right so the budget boat speech of Pravin Gordhan their Minister of Public Enterprises they're not allowed to begin by the members of parliament representing the economic freedom fighters they now have been asked by the presiding speaker to leave the house and they've been escorted out of the Parliament by the security officials in Parliament there they were saying that Pravin Gordhan is a constitutional delinquent and therefore we could not continue to deliver his speech so it seems as if things are calm now and it's quite likely that the Minister just happened and I apologize to our guests I will allow the Honourable Steen Hazen madam Hofstra hydration terms of rule 69 of the rules of the National Assembly is madam Speaker what we just witnessed here is probably one of the grossest violations of parliamentary privilege I've ever seen to prevent an elected member of this house from speaking in the house and they're not only doing that by exacerbating it by physically threatening the member is a gross violation of not only the traditions of Parliament but the rules of this house and I'll ask you house chairperson as a house chair of this house in terms of rule 69 to refer all the members here and I'm sure they'll be able to be identified on the video camera to the appropriate forum and that they be charged with gross disorderly conduct in terms of the rules we can't have a place where this place becomes a battle of you can punch you the hardest or who can our chart there person we use arguments not force in this house and I'll offset to restore the dignity of this house and try and clean the stain that has been put on the floor of this house today that that appropriate action has taken against those members Thank You honourable Stian Hazen honorable Sir David Shepardson as I totally agree with whatever stained haziness just said that this behavior cannot be tolerated anymore I think that this is a democracy where people must express their views but in a proper way not the way they have done Thank You chef thank you very much that will be looked into honorable Singh Thank You honorable chair Jay I want to also agree with what honorable dear nation and honourable member domineer said I heart ever has said on behalf of the IFP we also feel that this matter should be investigated at the highest level we cannot allow this kind of disorderly conduct and I thank you very much luckily we do have the footage and I will communicate that to the speaker's point of order thank you thank you who's there Oh Sheikh Imam Thank You chair on behalf of the NFB I want to also concur with my colleagues I think what has happened here today is totally unacceptable thank you Andy what is more important changes that I want to agree with what adorable Jason says but I think you know every crime there must be a sanction that fits the crime and I think that is the problem we have in this house if you can just address that I think will go a long way in thank you very much Thank You honorable SWAT Thank You Austria what actually aggravated the situation even worse today was the threatening attitude towards the minister and moving towards him constrained to stand next to him and I think that is absolutely disgraceful and it's a higher level of threats in the SAS that must be addressed so I concur with every speaker thank you very much do you have any other party leader here thank you for all of you and we will definitely take this to the relevant forum and the speakers will be notified of what happened here today and we will be advised as to how we proceed with the matter thank you very much and I apologize to our guests for witnessing such this is Parliament anyway and thank you Honorable Minister this is your time thank you house chair so let me start again honourable house chair Deputy Minister my soirĂ©e honourable members from all the party's boards chair persons and members of the state-owned enterprises boards executives that are running our state-owned enterprises and fellow South Africans firstly as we thank I'll come back to that in a moment in a few days time we will be celebrating Mandela Day it is also appropriate to acknowledge the 55 55th anniversary of the Rivonia trial today this trial and those that face the might of the apartheid state reflected the political moral and social courage of our leaders the Rivonia child is emblematic of the resistance to an evil system and demonstrated unrelenting courage to oppose injustice racial oppression and economic exploitation this should remind all South Africans particularly after what we witnessed an honourable members so what it means to be bold in the face of adversity and uncompromising in fighting any form of malfeasance and corruption and to that house chair we can add attempted violence and intimidation I have the honor to present the budget vote of the department of public enterprises for the 1920 financial year state-owned enterprises constitute a key part as we all will acknowledge for national life in our national assets they are central to a developmental and economic agenda the reform of state-owned enterprises is part of a broader agenda of structural reforms in our country the department provides strategic direction and oversight to the SOE s that it has been charged with responsibility for so that their businesses are aligned with the national growth strategies arising from the national development plan the medium-term strategic framework and other guiding policies of government chairperson over the last 18 months we have attended to many crises at our SOS we have also increasingly understood the deep damage that has been visited upon these institutions and the far-reaching consequences of state capture for the economy at large and if I may add shivers and what you've witnessed is a defense of state capture because one must ask what is it that motivates ordinary members of parliament whichever party they come from to engage in such intimidatory tactics and the question you ourselves and the public must ask is what do they have to hide what are they guilty of what is it that they don't want to be locked behind bars for and intimidation of this kind let me say very clearly and categorically is not going to intimidate me and stop us from fighting the good fight many of my comrades on my right have been in detention have been in solitary confinement have been in prison for one reason or another and face the might of the apartheid state this is something that we're not going to give in to let me make it very clear we've survived the path aid will survive this fascist populism the consequences of the damage to SOE Zin is felt in particular by the millions of the poor people of our country in the form of unemployment poverty and inequality this has had a negative impact on government's ability to deploy so ease in addressing or developmental objectives of course the quantitative damage is immense and were only unfold over time but today the department has collected some 3,000 forensic reports 3,000 forensic reports from just seven or eight SOS so far an estimated 600 million runs has been identified as collectable and due to the state the department is collaborating with law enforcement authorities to ensure that criminal actions are reported and that civil recoveries undertaken the investigated investigating directorate in the NPA the National Prosecuting Authority will fast-track investigations including from the evidence presented to the jungle commission the SIU Special Tribunal will adjudicate upon any civil dispute brought before it by a special investigating unit or any interested party in June this year a full bench of the Carleton High Court set aside a multi-million Ron contract unlawfully entered into between Eskom and Trillium a Gupta linked entity the court was scathing about collusion between former Eskom officials and directors of Trillian and had ordered the company to repay over 600 million rounds of fees it illegally received from ISKCON can I ask you to join me in congratulating the Eskimo in this regard I'm sure we can do better than that yeah of course there's billions were to collect previously McKinsey and other consultancy repaid close to a billion runs to ask him from the same contract similarly Transnet has instituted legal claims to recover large amounts from the beneficiaries of the 1064 what is famously referred to as the 1064 locomotives acquisition tender and related transactions the Special Investigations Unit is investigating another 30 Transnet contracts including property and IT contracts the largest of which was worth more than 7 billion rounds recently the Deputy Director of Public Prosecutions hermien cornea of Miss simian Khurana said that in a quote the cost of state capture hovers around 1.5 trillion rungs over the second term of the Jacob Zuma administration close quotations that is what these members who demonstrated their impatience earlier on to call it politely are defending we must be frank that after decade of mismanagement negligible board and executive fiduciary accountability for poor performance malfeasance that enable state capture and rampant corruption or because the biggest issue is amongst our biggest issue is many I'm in deep financial difficulties and will be unable as the president pointed out several times to trade the trade their way out of their difficulties the flight of good managers and technical skills who were chased out inverted commas by the capsules of these institutions has negatively impacted upon our histories it is also impacted staff morale and work culture especially from those who did not want to partake in corrupt activities and of those I am sure they are the vast majority in many of these entities in the last 18 months we have begun the process of restoring good governance skills management and a skilled management and effective operations at the SOE financial sustainability of the SOS requires a lot more work of course and several state-owned companies face negative cash flows and are financing operations from debt which has become increasingly difficult to raise on the 23rd of May 2018 cabinet approved a new permanent board for Transnet and similarly for Danelle and many of the other entities as well including sa Express many of these entities of course are also facing a changing global environment that they have to take into account both now and in shaping their future business models the department in turn will have to be cognizant of this changing international space if you like the decline in trade intensity driven growth in other words the amount of trade that has happened over the last 20 or 30 years across different countries is about to change as a result of the kind of protectionism that some of the big economies in the world are practicing the impact on global value chains and the emergence of global protectionism as I pointed out will have an impact on SOE businesses and operating environments and models as well so if there's less containers being moving around that will impact upon trans-ness business for example the role of our department however is going to change as well we now have an opportunity to develop the department into a modern ethical effective representative of government is a shareholder of SUVs this will also entail a new sense of pride and promotion of our collective national interest amongst the staff the department must and will develop into a center of government excellence where the best experts and skills in the various sectors in which SOS operate can be found there is a need to relook at the role of the department as a shareholder of industry and to give a lot more content and meaning to what oversight over these entities actually means see there's cyber crime going on here the time clock is disappeared as far as a new approach the shareholder oversight is concerned sheperson we want to outline the following which you labelled elaborate on as we go on the first is in respect of governance in accountability boards must be increasingly accountable for the financial and operational performance and repositioning of SOPs the new approach will necessitate that we revisit all the instruments of SOE oversight including the strategic intent statement the shareholder compacts the memoranda of incorporation and SOE performance appraisal systems secondly the SOE s must be more aware of the positive impact that they can and should have on the economy of the country by increasing investment in the economy crowding in private sector investment in many of their projects and infrastructure reducing the cost of doing business and the cost of living by reducing logistics costs and tariffs for example and promoting the growth of manufacturing linked to local procurement and localization in addition it can make a positive impact on the economy by creating both small and medium-sized businesses in larger numbers and contributing to the skills development in our economy and society as well looking into the future the boards will be asked to review their current business models and some of them have been doing so already and develop models appropriate to the new conditions that are unfolding both within the country and outside they should also develop financial sustainability plans over the next few months to ensure that SOE is a financially self-reliant in the medium term in giving effect to its renewed efforts to turn around here so is the department will over the next six to eight months work with the boards of the SOS to develop new operating models for their businesses and develop a financial sustainability plans for approval of government this will focus on governance and accountability and as I pointed out conscious effort to become involved more positively economy and ensure that more enterprises are created because that is what economic growth is about at the end of the day with specific reference to some of the areas chairperson Eskom as we all know and as the president has pointed out and the board is well on many occasions faces operational financial and structural challenges which are driven by massive costs and time overruns on the new build program some difficulties and collapsing governance over the period of time in the past unsustainable debt levels which sense at about 420 billion runs at the moment and the investment in poor maintenance of plants and several other factors that we've outlined before in seeking to stabilize the financial situation at Eskom in the short term the Minister of Finance as the president indicated would introduce a special appropriations bill in Parliament in the very near future he speaks later today and I'm sure he will give an indication to Parliament in this regard as far as the operational performance of Eskom is concerned what we will be looking at in the coming months is how the different episodes of loadshedding can be avoided in the future and Eskom and the department with the assistance of the Department of Mineral Resources and energy and the National Treasury will be producing a paper as the president pointed out in his response to the SONA debate and this paper will give an insight and indeed a forward-looking view on what the future of ischium will be and will outline the future energy environment the financial arrangements for Eskom addressed the indebtedness of Eskom and lastly the kind of restructuring phases that Eskom will undergo as we get into the future included in this will be an indication of further cost-saving measures in relation to coal cost staffing costs and the introduction of capital efficiency operationally sustaining a high level of energy availability is going to be an import tasks that the operations people within Eskom are required to give their attention to the department will cooperate also with my colleague Minister montage to finalize the nurse' amendment act to establish a proper recourse for regulatory decisions should ask him or any other party wish to challenge those in the news very much has been the chief restructuring officer and careful consideration is being given to this by both ourselves and the Treasury and hopefully sooner rather than data an announcement will be made in this regard as far as Transnet is concerned transness focus going forward is to improve the efficiency reliability and cost effectiveness of its freight transportation by reducing the cost of doing business and improving the competitiveness of the country's exports this is in line with the commitment government has made as part of the recovery and stimulus package that a review of port and rail prices will be undertaken in addition boosting exports and making South African industry more competitive than it is we have confidence in the board to realise the objectives we have set for it and the process of recruiting the new executive leadership at Transnet and in other entities is in progress as well and we are expecting that the boards will put forward names of competent and capable executive members of the executive teams to lead these entities into the future translates operational performance can no doubt be improved further rail four volumes have remained stagnant over the last MTS F period and well below the target of 330 mega tons per annum set for the company there has to be an increased effort to understand and respond to the needs of business thereby contributing to economic growth and efficiency the board and management will be set targets in the shareholder compact as well other boards and management as well to achieve these objectives my colleague the Deputy Minister will address issues around – no and Alex go and let me as I come to the end Chapas and say the following in relation to the program overview of the department as far as the 2018-19 expenditure overview is concerned the department was allocated six point five two billion runs for 1819 included in the departmental allocation was an amount of five billion for the SAA recapitalisation and one point two billion rounds for sa Express the allocation for the department itself was two hundred and seventy three point nine million runs the overspending or under spending of 48 million runs was the result of vacancies and frankly I didn't want to make any changes in the in the department attending the elections that have just occurred so that we have a better sense for what the president has in mind for this department once the departmental restructuring has been completed in the current financial year many of these posts particularly those involving experts in the different fields will be fold as far as the 2019 2020 allocation is concerned that the department has been allocated a budget of 293 million runs in nineteen twenty three hundred and twelve million runs in 2021 and 332 million runs in twenty twenty one twenty two the allocation represents an average growth of 6.5 percent it's just above inflation and the department's focus over the medium term will be largely on enhancing the capabilities of the department in performing its oversight role on the various issue ease by ensuring that the pool of highly skilled professionals is augmented as I pointed out earlier on program one which is administration and corporate management the aim of this branch is to provide strategic management and support to the department but of course includes the ministry as well program to state-owned companies governance assurance the priorities for this program over the year will be their goal of finally producing a government share which could be adopted in the next year or so which will then create an overarching legislation for isso ease under the control of government and this will amongst other things address governance SOE mandates the funding models and so on SOE reform is an ongoing process – and will continue to review the SOE landscape emanating from the report of the presidential Review Commission that was reported upon earlier around 2010-11 the main principles have already been approved by Cabinet these seek to assess the SOE landscape and to ensure that this regularity in terms of what happens in different SUVs in relation to remuneration the appointment of boards and the reform processes that are undertaken finally programme 3 which is business enhancement transformation and industrialization the priorities here will be to examine on an ongoing basis the maintenance plans operational practices electricity generation and distribution in the case of Eskom and other factors similarly in relation to other issue ease and optimize the the various assets that are held in different SUVs some of which as I said the Deputy Minister will address monitoring progress in working with Transnet in improving their cost effectiveness and efficiency and reliability of its freight transportation system and achieving a modal shift from growth to rail something that we've talked about a lot is government and as the SOPs and indeed as the private sector but haven't done enough at this point in time finally let me take this opportunity to thank the outgoing chairperson of the SAA board mr. McGuire who's tendered his resignation for personal reasons and the vacancies on that board will be full shortly secondly to thank the chair persons of the various boards for their leadership and diligence and a very difficult circumstances and for the board members with vanna in which they've applied themselves both to managing the crises but also beginning to turn around as we would say the various entities I want to pay particular thanks to the outgoing CEO of Eskom mr. Haddad who's present amongst us who has played an important part in sustaining Eskom during a very difficult period and at least solving some of its financial problems as he goes about doing it finally I wish the committee well in its deliberations and want to thank mr. Tudor Schumann a former official from the Treasury who went into the private sector four years ago and responded to the two Mamina called to come and help us in the department for the last seven or eight months he says government work is too easy needs to go and do a more difficult job in the private sector but we owe him a huge debt of gratitude for the excellent work that he's done with the department and finally finally as they say in the ANC to the members of the e FF in case they're listening they better adopt a different approach because intimidation and slurring one's integrity and casting aspersions is not going to work if they've stolen money from a bank or anywhere else they should own up to it and face the consequences thank you Thank You honourable minister honourable members that are still coming to the podium that is not just a computer there's a red collar there was the red color vanishes it means your time is up thank you I will now call the chairperson of the committee honourable mater I tried to take the debate forward [Applause] honourable house chairperson Minister Deputy Minister and all proper observe on the 9th July 1987 a young revolutionary fighter Ashley crow affectionately known as Chuck evaru of Cape Flats was brutally murdered by the apartheid police at a safe house in at log his assassination 32 years ago Rob Ostrava of the brave piece encourages revolutionary his untimely made an inspired more current efforts leading to our ultimate triumph in 1994 this speech is therefore dedicated to the memory of the chief evaru of the key flats throughout the course of our history the liberation movement has always been able to analyze concrete South African and global reality in order to provide lasting solutions it was under the same guiding force of the liberation movement that the multitude of South Africans gathered in Cape Town in 1955 and adopted the Freedom Charter as a basis and a minimum program of the revolution Alliance to combat the reality of Kazem of a special type in our country house chairperson honourable members there are still many stubborn vestiges of Coronas omocha special type the only way to fight the leakers of korazim is through execution of the national democratic revolution for the ultimate resolution of the three major contradiction of our struggle which our race class and gender we must aggressively execute the revolutionary program of fundamental change with the people of a real support minister the president highlighted seven priorities for the new administration while all I equal important I would like to lift two that are extremely significant for this portfolio particularly in pursuit of our Tavella model state agenda and they are one economic transformation and job creation to building a capable and ethical and diverse state this world is constitute the current stone of our agenda to reorient it our state owned entities towards the attainment of the democratic and capable diverse state as a practical expression of our commitment to execute the national democratic revolution we are in a revolution to be clear honourable house chair our understanding of the diverse state is a state that derives political legitimacy from is record in a climate development which it tries to achieve mainly by use of you selective industrial policy Honorable Minister we support a budget vote of the department precisely because we understand fully well that our pursuit of developmental objective to overcome the leakers of Abbate depends on capabilities geared towards a state-led reindustrialization process our state owned entities are the economic levers to which the Democratic state hold the possibility of directing investment inclusive growth house chairperson we must allow the department to embarked on institution building development of planning capacity as well as ensure asymmetry between incentives and subsidies and ultimately revenue generation which our strategies state-owned enterprises in the final analysis we need a capable and ethical development our stage to be able to hold the private capital accountable on investment priorities and the general developmental strategy comrade Minister honourable members Mastan to say there will be rhetorical post charring from the far-right and disillusion al fantasies from the populist fascist who pretend to be the left by the way this I characterize as crazy without critical thought it has become predictable that neoliberal circles parroted tactics and agendas that advocate for the privatization of the state-owned enterprises the advocates of these discredited orthodox do not have the interests of our people because if they did they will disease from advocating for appropriation of social and quality versus for private wealth accumulation they advocate for giving free license for primitive accumulation by people who only socialized the risk and losses yet privately appropriated against objections of the mantra of wholesale privilege derived from among others the observation by renowned scholar Noam Chomsky when he said I quote predatory capitalism is incapable of meeting human needs that can be expressed only in collective terms and its concept of competitive men who seeks only to maximize wealth and power who subjects himself to market relation to exploitation and external Authority is anti-human an internal abode in the deepest sense a close quote another minister weaken care with the president's view that as calm as well as other state-owned enterprises are too important for our economy to be allowed to fail we must state categorically clear that as common all these state-owned enterprises must be stabilized in all corrupt elements weeded out in order to return to revenue generation path for a Kermit evelopment in this respect honorable House chairperson we must condemn I mean which must comment the web of the portfolio Committee on Public Enterprises of the fifth Parliament it's very important that one we must commend the web of the portfolio Committee on public enterprise of fifth Parliament in unearthing the scandalous corruption and governance decay that plague our most vital state-owned enterprises this action actual are still resisting the work of that committee we must call upon the special investigative unity and the national postal Authority to Experian investigation and prostitute all those implicated that we must see people being arrested for wrongdoing in this age in this age of renewal we we have a duty to add and root out corruption and you must do so with speed and efficiency we can't wait for for horizontal to fill the commission of Zadar to finish this must do we must do it in the interest of restoring the credibility of the state and the revolution for it was the German philosopher Karl Marx who once observed that I quote philosophers have only interpreted the world the point however is to change it let's change it so let's follow this instructive observation and actively and change the narrative and improve the image of our country demand of public enterprise the department of public enterprise currently oversees and is and is government to hold our representative for about seven state-owned enterprises there is no doubt that these state-owned enterprises have a huge responsibility towards fundamental social a social economic development the budget vote is essential to the department is oversight function in 2019 2020 a total of 293 million is allocated to them unfortunately honourable chairperson your time has expired can you check that the clock on your left thank you honorable chair honorable Missoni of the da house chairperson barato honourable minister honourable deputy minister fellow members of parliament ladies and gentlemen minister allow me to demonstrate how one disagrees as a democrat and not like the fascist behavior we've just witnessed in this house and I'll serve my third term as a member of parliament member of the National Assembly of the Republic of South Africa and I served my seventh year as a member of the portfolio committee of public enterprises I'm now more convinced than ever that this department should not exist it is public knowledge that the Department of Public Enterprises was established as a catalyst for privatization of the public entities that were put under the control of the department it makes no sense otherwise for is come to belong not to belong to Energy and Mineral Resources Transnet should belong to transport Danelle should belong to military defence Alex Corps should belong to Energy and Mineral Resources they say a si Express in mango should belong to transport and South Col should also belong to Energy and Mineral Resources the problem here is that political expediency and differences in ideology has camped pregnat ism and good governance an opportunity was exploited to use state-owned entities as an employment agency for the ANC and for a cash car for their investment wing and election campaigns it was just too easy to use the public enterprises to siphon billions and billions of rands to politically connected families and companies not to mention the lining and building up of pension funds of politicians without general thrown in just for good measure we had to be the only country in the world which has allowed people who are well known to have carried out one of the greatest highs of all time to go unpunished in fact in South Africa you can admit that you attempted to bribe someone on instruction from criminals and remain not only a member of parliament but a chairperson of that very same Parliament in South Africa the Department of Public Enterprises it proof that all international investors use to measure our corruption levels is the cause of their choice investment destination to be anywhere but South Africa it matters not habit the Department of Public Enterprises it matters not how small the Department of Public Enterprises it is a superfluous entity and it should not exist I recently wrote to Minister of Public Enterprises Minister Gordon asking for an official comprehensive review to be conducted of the state-owned entities the reply received came as no surprise again the ever famous yet ever-elusive presidential review committee established in 2010 was referred to as the guiding framework for the department in response an inter-ministerial committee was established that was then converted to a presidential estate owned entity council this council is supposed to reposition their tsoi's as an instruments of economic development now we've had review after review task team after task team commission after commission but here is the fact state-owned entities are archaic in their design and they should not be used for economic development they do not work the economy should be growing through supporting a free market system which gives South Africans choice and which gives South Africans opportunity to create a conducive environment for national and international investment you cannot grow an economy when you're a whole ransom by unions who crippled state-owned entities when their demands aren't met you cannot grow the economy when your energy supply is not completely secure and you cannot grow the economy by pouring billions and billions of rands into already failing entities South Africans are literally starving 10 million South Africans are unemployed South Africans do not have homes they do not have water they do not have any tricity they do not have basic services our schooling is rated as one of the worst in the world our crime rate is completely out of control but yet South Africans are still expected to fork out billions and billions of reigns in bailouts for these failing entities it is an absolute disgrace and it is not condone Abel no matter what your political ideology is nor what your political background is the Department of Public Enterprises has absolutely zero power to hold our entities to account the boards do as they please unions play the minister like the fiddle that Nero played while Rome burned the situation is unfixable quite simply my friends the car has run out of milk the goose has laid the last golden egg the Fiskars is collapsing under the weight of corruption asthma and mismanagement it is hard to imagine that in the year 2019 in a country as fiscally unstable as ours we still have a government who dares to justify the blatant theft of South African money the most frustrating part of it all is we actually really do have the power to completely turn the South African economy around but because of ANC factional battles because of a sheer lack of guts and determination because of fear of retribution the government lets the criminals win and the South Africans remain poorer locked in a cycle of poverty and the situation becomes ever more dire it is time to put the South African people first political factionalism in the governing party is literally killing our country day by day let us be the Parliament that does the right thing let us be the one who stands up to the looters and the criminals let us be the ones who are what we intended to be the custodians of the South African coffers and the defenders of our people Thank You honorable Maloney the Honorable in Kosovich a lazy from the IFP thank you very much I will chairperson Minister and colleagues allow me chair to tell the President and the Minister for their commitment and blood will to turn things around from the previous administration in the past ministers defended the rotten attack members of this house when they were raising issues the role of this department is to drive investment productivity and transformational state-owned entities and law crowd privatization create jobs and develop skills the success of our ISO sees entropy quick growth is critical yet this has not quite been the case in the past instead Chiapas in this department is truly definitive poster child of this government in respect of grand corruption kleptocracy nepotism and Curt appointment the crippling of SOS has played a major role in the country stroke internal trading ratings in fact it can't be easy argued that the last decade in the history of this department was spent building nothing more than Patras networks through the misappropriation of public funds and elites aligning their own pockets while we trust that Minister has the will and expertise to address the failing state of our SOPs but the question remains with our Minister heavy support from the ANC in cleaning up this SOS from within that's a question we'll ask the various challenges faced by also is our internal and includes weak inexperienced and incompetent leadership which can affect our identities strategically operationally and financially or I will change as calm continues to fail our people not only by failing to keep our lights on in the country but it also charges more for poor services through its quadrille tariff hikes affecting the poorest of the poor Champa seen what is of great concern is the fact that current apartments in superlatives and city's own as all as convenience or friends and this is unacceptable that these bills have remained unpaid for years but more importantly this self-sabotage must be rooted out on sa a another entity operon and build-outs staff issues and rupiahs anomalous appointments we note many similarities it's not it's all from within it's not it is not time on every Minister that we cut our losses and constipated private partnership in this state owned entities horrible change just two weeks ago Donnell had to request 2.8 billion reigns bailed out and could not pay salaries in full at the end of June what does this do for staff morale what does this say about the competence of Cinna Financial Management in these entities staff retention is affected to to instability who can work for a company when things are unstable within furthermore when we talk about an L we are not just about any company but one which is part of ensuring that of ensuring the safety and security of our country if the net led to fail this may pose a risk in future cases an ability of our nation's security or will chairperson a line must be drawn in the sand which clearly states and Democrats this far and no further corruption must be thoroughly investigated and competently prosecuted at all state owned entities the fact of the matter remains South Africans can no longer afford to pay more for assault is who are not fulfilling their mandate and do not add any value in as far as this is concerned if we look at the strategic objectives of state-owned entities which is economic transformation there's no progress in this regard will come to job creation instead of creating jobs as of this kind even managed to retain jobs when it comes to building a capable and ethical state we've got a road that is imported from within thus undermining the very same objective a better Africa in the world how is this even possible when we are currently on our knees this is the relative we must face Honorable Minister and this department is an enemy of its own and a counterproductive if it fails to deliver on its own key performance indicators however in commitment is the IP to work in the best inches of South Africa the IFP does not oppose it budget thank you thank you in conceived to Lizzie from the ff+ onset of butternut Versalles Thank You honorable house J house J what we saw here today is absolutely disgraceful and Honorable Minister for us che we respect you and we stand behind you in your fight against those who looted and you captured the limited resources of our beautiful country we want to tell you Minister do not stop your fight do not be intimidated do not be held ransom by those as we saw here tonight who wants to protect themselves on that point I wonder where the Honorable milena is tonight but if we look at fascism and the history way off you also didn't see Hitler anywhere near the trenches or the gas chambers the Honourable Mollema is most probably sitting in camps bay while his troops must protect him to save our SOS and our Fiskars and so doing our economy we need the political will to address the problems and to actually get our SOE is back on track to act against those who transgressed those who looted and those who stole but also to prevent it from happening ever again and then Honorable Minister through you J you can also not be held ransom by the alliance partners of your own party the trade unions can also not be allowed to hold you ransom not to take decisive action and to actually take those steps needed to get out Esso is profitable let's compare some of our SOS to a former state-owned holy state-owned entity talcum which is now partially state-owned 40.5% and who is now profitable the latest financial results show profit after tax of Telecom rose by 11.5 percent they also paid in taxes 1.2 billion rand and 750 million rand in dividends to government very comparison to sa a and acecomm sa a niche 22 billion rand in the next three years from our fiscal and acecomm requires 69 billion rand the turnaround of talcum however did not happen overnight and that we know but we need to start some way and the trade unions are stopping government from actually doing what is necessary also Minister do not be held ransom by ideology let's take the steps to save our economy and our fiscal and actually be it acting the interest bit in best interest of all South Africans then let me also say and take this opportunity to reflect on today today is a bad day after what happened here but it's also a good day 119 years ago today there was the battle at silicon neck and by da default sloth of Potiphar asserted 8 as the in osa where van a Bible long Erica stop and he strike timkuli and Lesnar strike but by erica dirac marble long Erica stop Pandavas work belong a rack of boar a few acetate font Krista it's by Belanger Kabir hustler is it and Danes but about Mike risky t VAR kisses enough at Ravenna frightened plasticity percocet to difference on place Mitaka Valda c'mere the right idea in it and vague data and store phone time not saving votes we add more votes than all four other parties who can taste it together so don't continue your lies the vote is out they see that there is an alternative there is alternative policies which can save South Africa which can save our SOS and those virtues in Ward 30 in Mato sauna in the northwest yesterday put a confidence in the freedom front plus that growth will continue it will continue towards 2021 and we say to the ANC we will be the opposition that you actually require we actually oppose your policies we don't only want to win you we want to oppose and actually work together with you as well to better South Africa in the interest in the interest of all South Africans not only yellow they but in the interest of all South Africans and that is what we need Honorable Minister we need cooperation we need to our South Africans or be proud of our state and entities be proud of our government departments we need to take a stance all of us as South Africans against corruption against polluting but also against what happened here this evening against those who want to act lawless and we must take a stand to the sky no for adjunct minister after let's must so again thank you so much on a blouse chair a Minister Pravin Gordhan the honourable members of the of the house the chairpersons of the boards of the state-owned companies as well as their executives the 1-up guests in the gallery ladies and gentlemen a good half and nearly good evening firstly honourable house chair I wish also just to enlist my voice in expressing disgust at the deplorable scenes we have witnessed here at the start of the session I am most confident that many peace-loving South Africans out there who want peace prescribed prosperity and progress are enraged at witnessing some of those occurrences in this their Parliament the expression of their collective power I have no doubt in the ability of Parliament to ensure that its dignity and standing is protected as well as restored in the face of the people who ironing for this institution to do what is good for them participating in this debate chair I wish also just to say we've been recently to elections and elections overwhelmingly our people showed their support to the various political parties yeah of course they also gave the ANC the responsibility to lead a governance and in that respect we have a duty to respond to the cries of our people who are not going to come to come here and cry like Heather's raise our hands in the air in hopelessness who have got to make sure that we bring forth the changes that our people aspire in this respect the president has in his State of the Nation Address a asked of us all to buy into a vision a vision for this country a vision that looks beyond the perils and challenges of today a vision in which we have a sense of view solutions to the problems that were currently facing that vision imagined South Africa is a country that has embraced the fourth Industrial Revolution and in many instances that is exemplary to the wealth in that vision I also imagined that we would see our state-owned companies being agile companies effective businesses that deliver reliable services to the country the sa a that is the beacon of our national air carriers self-sufficient and working efficiently in in a United pan-african led air travel ecosystem that competes well in the global air travel space that vision on a house chair is not a new one in fact it is a reimagining of what we once were and could be again our sources have been plucked by many challenges as have been outlined in these if left and abated will surely result in their collapse and failure when a browse chair it is true that corruption and malfeasance has crippled not only our SOC s but our country as a whole it has touched tannest the good standing that some of our sources held in the world and has brought some of them nearly to their knees however on a browse chair we cannot allow this to render us to a failed state as a government and the Department resolute behind the leadership of Minister cotton were determined to root this all out at all levels we are addressing the structural challenges facing our state-owned companies and are taking tangible steps to diversify their service and product offerings they must be market agile and fit for purpose the interventions we implement must be efficient solutions it must bring efficient solutions and safeguard the interests of all our people in ensuring that the essential the services are provided in a cost-effective manner specific honorable house chair to the South African Airways as the Minister has so indicated in his introduction we are making a number of interventions in that respect but we have a concrete reality in which we've got to come to comprehend with the reality of our domestic aviation environment is that it is effectively deregulated and therefore robustly competitive international aviation or though somewhat regulated through a bilateral agreement system is also by and large free and competitive if our Ellyn assets are to be to effectively compete and survive in this environment with a minimum drain on the Fiskars it is imperative that they be turned around and be made fit for purpose our port in this respect will be working in agency to address the decline of the airline and its ancillary business and this must be founded upon the appointment of a well class executive leadership team with credible aviation experience as I had indicated on a browse chair we will not let our associate sail were committed to ensure they serve and support the national development agenda but having said that the airline must undergo a rigorous and substantial process of reducing costs improving efficiencies as well as strengthening its operations a comprehensive review of its domestic regional and international routes will be undertaken to minimize losses non-core assets with which currently distract the management from attending to its core core activities need to be relooked at and possibly disposed of those that could not be profitably used by the institutions we must stress that our state-owned companies that are working within limited budget framework we have got to look at a diversity of fiscal energy of injections financially so that the Fiskars is not exerted unnecessarily on a browse chair I am looking at the clock I must try and run very fast I have to also attend a few of the things that have been stated here in this we do want to work collaboratively and president has because the challenges we have to face belonged to all of us and we must work hand in hand to solve them it's not only for the department it's not only for the state entities the state-owned companies the boards it is also for all in those entities labor as well as the private sector we've got to collaborate to find solutions to some of these difficult questions for which we have began taking measures in that respect regarding Tinnell I want to say some early it's not that two men Klum yes they are immediate challenges but suddenly there is also a pipeline of opportunities that properly followed that institution is poised to change for the better forever and it is possible through the collaborations that one is talking to the honourable members that spoke before me here honourable house chair particularly a the longest-serving member in the portfolio committee in which I attended honourable Mazzoni certainly we do appreciate the working collaboration the views the inputs from all of us given the nature of the challenges we have I have helped you and you've repeated this that you have correspond it with the ministry in respect of a request or a proposal that they be convened or they be undertaken another comprehensive review of these state-owned companies if I listen to you you also say that there has been many of these reviews that have been done and indeed that there seems not to be action I don't know how different it is going back again to doing the same thing I think what we need to be doing is to take forward the work of the presidential review commission all of us where to and to make sure that it is successfully implemented and in that respect measures of already been undertaken this the SOC Council has been instituted would be coming back to the committee to report progress in respect of the intervention so desired as mapped out from that state-owned associate counsel has led by the owner president that the department need not to exist is no different from those who come here to disrupt proceedings it just works in the same way but from different angles I think we must really desist from that let's in a constructive way where to building to take forward some of these than simply just hopelessness and destructiveness in that sense I also take that the point in fact it is completely without justice to say when when measures are in place that this government is letting scot-free those who have stolen to run away with it suddenly that is not true if one looks at what has been put in place the sort of interventions that are prospective to any statement that suggests that government has net scot-free those who have actually stolen from the government it is a misrepresentation effects let's look to the measures that have been put in place in fact the president has led quite a brave effort to ensure that the NPA is actually given capacity they are working on it and this is what I think instead of just crying praising heads up hands up let's work together to get these to get this thing done on opportunity III I also think that is the same we really are looking to working with all South Africans including political parties in dealing with the challenges that we have certainly we need that environment in order to say to it that the transformation we really much need can take place thank you very much on aperture yeah I did not want to disturb the speaker on the podium is that but I know raising a concern that vulnerable melam at the gallery is tempted to heckle and is heckling but while he's on day under gallery which may may may pose some questions to us that members of the no yes to decide please refrain from doing that thank you very much and first the de assets now honorable Miller okay there were no seats but here we have since thanks we now call on honorable energy from the agency to take a [Applause] Honorable Chiapas in Minister Deputy Minister honorable members honorable guest comes and so on KOAT Africa good evening as we to pay as we debate dispatcher to must be polled have a clear vision and have ethical leadership tied at by the ANC policies and the mandate given by out by to us by the millions of South Africans you must not dare to fail them or betrayed them we must not lose focus honourable che on a vital role of state-owned and companies in generating inclusive growth providing efficient and cost-effective network services and deliver public services to poor those who can pay and those who cannot we have a responsibility to honorable chair to restore them to be able to perform their mandate to their best quality capacity and to encourage a significant new investment in our economy with with the aim of achieving sustained inclusive growth and transforming our economy honorable chair person just to remind us because there are so many howling and misguided concept out there our our Eskom mandate the mandate that have given Eskom is to generate transmit and redistributes electricity to industries industrial mining commercial agriculture and residential customers and RIT distributors to improve the quality of country's infrastructure will ensure a reliable and cost-effective electricity supply to his machine to its mission and development of economic growth and deliver to the insolate government mandate on its commitment to advance skills development especially to our young people and we are noting the challenges facing as common arrabal chair as Honorable Minister puts it very well on the Sun at debate on the 25th of June 2019 open court a democracy that continues to build on the achievements and successes on the past 25 years while having the humility to admit to them is to the witnesses and the mistakes of the past close codes as come yes we are we are all agree that we are experiencing severe financial operational and Covenants challenges and has that that challenges has impacted on the performance of the economy and place pressure on our fiscal the installation of municipal appeal and and so acetate plays a huge impact in the in terms of as calm cash flow and it's destroying only only only on a billion M arraigned a month owing to the difficult economic conditions Amanda back it's a battle on a Ponta grossa and the rampant culture of non pay of non-payment in the country but as we are encouraged about the program as common all the stakeholders including the government departments in dealing with the effectiveness and efficiency on the services given to given given to our people and also working with all the the relevance they called us to encourage those who can pay to pay for the Philippines and for the services structurally as come we are lacking transparency regarding the cost and the allocation of resources that make it difficult for the S come to understand its own competitive advantages a cost overruns and poor performance on the build programs as we have observed and the minister has alluded to dead on the meta P and Gosselin has suffered a massive delays and cost overruns June 2 to 4 player and general designs and poor procurement practices that let – systemic corruption and has compromised the credibility of Escom nothing that honorable sheperson guided by the 54th national resolution twenty-three of the African National Congress that said on the firm action we did to take a firm action required to improve government and performance of the state-owned companies the lesson learnt is the further growth we need a reliable sustainable supply of electricity we we are on our path to recover and we are noting with great hope honourable chain the appointment of the new eskimo of the of the newest comport we find joy and encouragement from the passion commitment and excitement among the thousands of South Africans who really makes already want to make this entry to work not to the homeless but the to us as the president alluded in the SONA amongst the children amongst other challenges that the port is at rest and currently is directly availability of the installed capacity and the electricity availability focus on the power station ensuring timeless meant maintenance and quality of work to be delivered to our people because we are not here to for a beauty contest you are here to make sure that we deliver quality services to our people the progress that is made by the port in installing the culture of effectiveness and transparency on government confirming the number of fraud and irregularity cases is exciting as now the minister was was reporting on those cases those who don't listen it's not our baby we are continuously about you very much on that note we support honourable minister we support the pot and will not thank you very much thank you thank you honourable member honourable Sheikh Imam is in the house are you coming to speak I see you were writing me a note at least you are here Thank You honourable house chair I've been running from one house to the other so and there's a delay on that side as well but at the very outset that we welcomed the report of the Department of Public Enterprises and the National Freedom Party will support the report table you Minister I want to congratulate you on the stance that you are taking and yes indeed I do agree with you that if you want to stop corruption if you want to stop fraud then of course you have more enemies when you do the wrong things you have more friends when you do the right thing you have more enemies so I congratulate you understands that nothing will deter you from ensuring that we live in a society free of any corruption now Minister I have previously on numerous occasions asked what is the real challenge that we have that when it is a state-owned entity run by governments we have a problem but when it is in the hands of the private sector then it's managed and it's profitable now I know one of the reasons and one of the what we've identified was the fact that there's been interview interference by government officials that what the private sector there's been corruption and a whole lot of it and my understanding is this that would it not be easier and more successful if it had independent management with no interference from us at all so that it is run as a business it's profitable but also provides the services intended in terms of its managed now that's the first thing the second problem I have is with South African Airways now Minister South African Airways came and did their briefing even at the appropriation committee one thing and Exim which was about 23 billion or so in Ulan and I understand in terms of business that if you need 23 billion to solve your problems and become even and start becoming profitable and if you give somebody in tip with 2 billion 3 billion 1 billion it's not going to work and the CEO they had expressed concern on numerous occasions and I'm not surprised that he's resigned because it looked like he was now being set for failure because he was not getting the tools to be able to turn south African Airways around now South African Airways itself is not only the problem if you look at some of the challenges it faces in terms of the routes you've got other airlines and this is where the aviation industry comes in you're giving routes to other airlines and you're expecting your own airline to make money someone's going to argue what about competition and things but surely you need to put the needs of your own people in your country first so you're giving routes even some of the international airlines are flying where previously our own airlines used to transport them from our combo to Cape Town and thing so that's basically another challenge that we're not addressing and yet we expecting sa-ay to to to make it a turnaround now the issue of Escom and I must commend you on the intervention minister that you are putting into inaudible member thank you very much thank you the National we supported thing Thank You Chi person on row Minister the a CDP fully appreciates the severe challenges the SOC is present not only to the Fiskars but to the economy as a whole we saw 3.2 percent contraction in GDP for the first quarter of the year which many attribute to s comms load shedding and we were given the impression that the massive amount Treasury set aside each year for 10 years that will be 230 billion will be enough of a bailout for Escom now it appears that this may be insufficient and that is come may need more than the first year's allocation of 23 billion and this is deeply disturbing and we as parliamentarians will need to exercise our oversight over any proposed bailout and thus we will do when the special appropriation bill is introduced now Minister having served on the Eskom oversight inquiry in the last Parliament with a number of members here like the onboard Mazzoni we have some idea of the looting that took place however the further evidence before the zonda Commission has given an indication of the far greater severity of state capture and corruption that occurred at the SOC s in this regard we are however pleased that there has been some recovery and well done – s come for the recovery of the almost 1 billion rand which was repaid by McKinsey mainly at our encouragement to go after that money and then of course the 600 million that was recovered from trillion via a court process so much more needs to be done in this regard and those that have been involved must not only be not only the money be recovered but they must be arrested and charged and I've long said we don't have to wait for this under commission and I another member said we don't have to wait for that let us go after those that are involved instead capture now if one also considers the role of certain compromised companies that must also be considered the role of Trillian together McKenzie the role of Bain and KPMG played in the Halloween art of SARS these private entities must also be held accountable and the question is as is indicated Minister whether a I think these were your words a hurried apology and the repayment of fees is sufficient we think not and we consider the damage that is done to the country and of course we also serve in where I serve on the Justice Committee we did receive an update from the NPA boss at the Camilla Vitara he and the new head of the investigative Directorate advocate cornea they are investigating progress is being made but clearly they are budgetary constraints in that regard and these are complex matters forensics they are very complex requiring a lot of funding in addition but the asset forfeiture and special investigation units are making progress and we welcome the special tribunal which will expedite civil claims to recover ill-gotten games expeditiously chairperson I have also long argued that those as those units need to have the budgets increased substantially so that they can quickly recover the ill-gotten gains Minister just lastly the extent of the pushback of the reformist agenda and the holding to account all those implicated in state capture is evident no more so than today with the disgraceful conduct that we saw in this house we have a cdb condemn it in the strongest possible terms and we agree that what we witnessed was indeed a defence of state capture humanists are served with us in the Eskom inquiry I said then as I say today we including you Minister as you said earlier will not be intimidated we will stand resolute and determined to expose corruption and state capture and to hold those involved accountable and may I add in conclusion that as we stand firmly no weapon that is formed against us shall prosper thank you thank you well I'm going to disappoint you today I'm not going to say that honorable members despite numerous attempts I beg your pardon I should start at the beginning and say well good evening here with es ABC News Channel and of course that is the live scenes in Parliament at the moment discussing some of us even the reputation of being condemned as if there's any such word we would stand up in the house and condemn all the time when something wrong happened we condemned but the issue here Minister Gordon I understand the political dynamics around this issue and we condemn it but Parliament must enforce its own rules without fear or favour that's the important starting point so that we can deal with those people who don't want to respect this institution so that we can bring back the decorum and the respect for this institution because if it loses credibility then we're all doomed South Africa despite numerous attempts bailouts and interventions by governments to restore good governance and stabilize state-owned enterprises South Africa's Esso is continued to face or pose rather serious risk to the viscous of our country therefore the need for reconfiguration of some of the FSO is very important but I want to focus we want to focus on NASSCOM in particular because of the systemic risk as composes to the South African economy for obvious reasons we're not going to restate them but how share we want to particularly talk about the proposed debt I could stop for a scone by P IC which will without a doubt improve as comes balance sheet and we'll give the entity some financial room to maneuver however this should not be done without first addressing the underlying structural and governance challenges facing us come in other words mr. Minister if were to give a scone money via the debt I could use up what my ass could why we calling it giving the money when it's a debt equity sup there will not be servicing any debt and through the special appropriations bill announced by the president during the June Sunnah without first addressing the challenges that amount to throw money at into a bottle a bottomless pit Minister whenever we walk around the country and interact with South Africans South Africans are asking they want intricate details about how government intends to unbundle Eskom and the effect of such a strategy or less common and electricity generation this is a question that ordinary members of the public want an answer to and with all the platitudes that we've had so far and all the confusion that has been created they are concerned about their future including the workers we support the performance board performance evaluation framework for us all is because we believe it's a step in the right direction and we support it and we hope that is going to be prioritized but as we deal with a score mr. Minister we need to deal with the municipal debt which is piling up and deal precisely with what we prefer to turn as so whether exceptionalism all municipalities including Soweto need to pay up so that we can improve the cash flow of Escom we can't it's the hypocrisy actually starts with us politicians when want votes we go there to encourage people not to pay up after elections then we say to them they need to pass it's disheartening I was listening to an interview when some of the people from so it was saying no I can only afford to pay to rents I can only afford to pay for friends making a mockery of attempts to get people and to encourage them goodbye but I'll see to our class that was a consequence a inaudible demeaning Connor Honorable Minister Deputy Minister it has members the end the nc54 National Conference resolved that the main purpose of so is is to operationalize the broad social economic development plan of government trusts net is one of the seven state-owned enterprises under the Department of Public Interest public enterprises it operates at Africa South African sports freight in pipeline infrastructure in session of core function is to assist in dooring the cost of doing business in South Africa the corruption state capture mr. allocation of the roses resources weakening of the leadership and breakdown of the control system have had an adverse impact of the performance of the entity the challenge have not happened until in the NZ government is the committed to turning the situation around with our oil OS is the items of situation is expressed by the NZ when they are knowledged and resolved that the firm action indeed require improve the governance and the performance of ESO is the NZ did not as not just allude to the problem but also the resolve in in the same presidency the problem can be resolved by the insuring and appointment of skilled staff in qualification qualify board members and protecting public institution from improper interference chairperson I am happy to report that the department of public enterprise is already put turnaround start it off for transport emotion acting in accordance with the president call for straightening of the ESO is in order to ensure that today that it is a so is it fulfill their developmental mandates the NZ lead government appointed Newport members directors made me 2018 the pod commitment is achieving sentence indicating income economic and development all set the Department of the Public Enterprises one can begin an explain that important of this entity and it is so social economic impact that entity is big contributor for skill and development through the various division through outreach program namely health care and train and transport just met is the provided primary health and services enroller community along Transnet strategies in corridors in the financial year more than 400,000 lives were touched by did this entity this is this is what our the to train through their clinics and provide general health in education dental and I in pharmacy services trust us as a remained financial substance since the inception the last time any current or current sees the issue was in 1999 this will expire in 2029 the budget is important true because it is allocated front of allowed to the proper implementation for the department in turnaround strategy the allocation of program to entry give the Department of a capacity and performance in oversight infraction of the turn in the dissociation around the anti supports the deposit but the trust that is remain financials for the first time the many years trust netted received a unqualified audit opinion for 20 2017 financially the opinion was based off the effect that the auditors could not verify the translatory colas expenditure which increased from six hundred and ninety two million in the 2002 to 2016 2017 minister this is must be attended through the matter of agency and reported to the committee be given the proof of progress in in the record we lot of we note that the performance in port operations improved by six percent from four thousand three hundred ninety six twenty feet in covalent unit in 2016 and 2017 through four thousand six hundred and sixty four in 2017 and eighteen in the same VIN and quality quality noted that a pipeline volume any decrease by three point nine percent from sixteen point nine billion liter to the two-month close honourable member ANC supported a budget Oh how's che in deputy minister members of the portfolio committee chair all members present here as well the ports and the community at large I'm tempted here I prepare a speech but I feel interested that most of the things I would have covered they have covered and I want to respond to some of the things that have been raised here I've got a feeling that we are not honest to ourselves we need to keep credit where it says to I think I'm only here for three months and I've seen the strides that this committee has in fact made it would be unfair that this committee or perhaps the Esso is must be abolished because they are not doing anything it's an attempt if we say we are in government everyone is included there is no one who is really excluded in this in this manner let me take you back to what our of just coined that we've got what we call it it's a so is wrote to stability with my own college and I hope it will work I'm taking the president saying in 2018 Minister I'm giving you a directive that says you must go and restore the Esso is that is in 2018 and in 2019 the president says to the men now we have managed to restore those s o is now I want you as essential strengthen those s o is am today speaking in front of you with the achievements that the the ports as well as the department have really achieved there are ports that are in place today they are co-ceos there have been appointed those are all achievements that we have gained it will be unfair for instance if I may talk to because my task was to talk about Danielle the 2.8 billion that has been requested by Danielle is the fact that we give oversight to Danielle Danielle and in fact if dinelli is short of money the first port of call is us they will have to come to us and talk about it and I want to say that comrade president after giving that he then said you go and do this wait I'm expecting that next year he will come up and complete the road to the SOS there are achievements that many of these have been done I have the appointment of the new boat I have the CEO's that have been appointed of course companies there in fact have renegotiated I have companies there in fact the reports are renegotiating some contracts I have to avoid termination of the staff they are entering into negotiations with a severance package and importantly there is a pipeline of plus minus theta billion that the the company Tonel is likely to get once they are flying flying high I must say that it would be unfair I thought jointly were in a position to say we work together and make sure that we achieve what we want to achieve Minister we have raised something that says there is 600 million that will have to be recovered may I add something out of that 600 million I'm not sure whether it is relevant to raise it at this stage that is it possible that all those people who are implicated and there is a potentially dirty they may end up being convicted their bank accounts be froze thank you house chair the Honourable Minister Deputy Minister honourable members of the portfolio committee distinguished guests ladies and gentlemen members of board members of the SOS I observe protocol modulus to low income eligible Ellis Chaves Africa kebap our Africa Baraka bop harakiri via a local hotel abba demi lovato honorable chair una la pelea ringing denying the truth does not change the effect and Yama Paula we are a denial is the worst kind of lies because it is the lie you told yourself model ostilow be a local hotel a agency who will not deny the fact that si ans a expressive serious problems because if we do that we'll be telling ourselves a lie as the minister has already alluded and the DM but again focusing on the problems does not yield solutions it is in fact leads to depression and as as the NC where we are going to avoid this depression I choose honorable chair to focus on the solution and goals that will help the SI is to get back to its profitability rather than their problems honorable chair person one of these solutions is contained in the SI a long-term general strategy that was presented early in February this year progress was made with routes optimization and cost efficiencies as the minister has alluded when he spoke he was addressing us according to this strategy the airlines will create a three business units focus on domestic focusing on domestic international and regional operations they will share services such as finance Human Resources commercial and legal and each will answer to the SA board this long-term plan includes four phases arresting the problems implementing changes stabilizing operations and growing the business already honorable chair in October last year Gyan Fredrick's was appointed as the interim chief financial officer on secondment from Telecom he spent his first three months at sa a focused primarily on its cashflow challenges and there are some positive improvement shown to date as a honorable from the other party was alluding to say it has a potential and we need to protect Honorable Minister as much as we have seen or the record shows that there's improvement to date we recommend that skilled and professional public servants should remain to their workstation in order to strive and contribute in a very high level of work also the airline recently secured loan that amongst to 3.5 billion from local lenders to help pay their 2.9 I mean nine point two billion legacy debt the mere fact that private lenders are able to lend sa a some money means that they also believe in the viability of the entity so we also need to be optimistic and support the sa a the at travel experience is very good all of us as members of this house we travel with sa a that we are very happy with the service sa needs support from all stakeholders of course there is no doubt that Parliament is one of these stakeholders and we should assist sa a through proactive of a site and ensure the strategy is implemented honorable chair the government is also playing its part as our president president cyril ramaphosa recently met with the chief executives of 20 state-owned companies including the si ans I expressed to discuss challenges plunging state-owned enterprises this also is the these CEOs were given clear matching orders by the President and they have pledged their commitment to ensure that this s au is our tenth around there are some of the facts that we cannot deny and they show us that there's still a reason to keep si a including si Express and mango on the asset book of government as such we are in support of the government bailing out the entities with conditions of course we do sir we do of course understand why this was not done in this current budget in conclusion or else chain we as the agency we really supported the budget vote and you call on the minister to speed up the consolidation of the Alliance Thank You Charles J person the national development plan aims to eliminate poverty and reduce in quality by 2030 to achieve that the economy must grow faster and in ways that benefits all South Africans the Democratic Alliance is particularly concerned about the welfare of young people who have borne the brunt of underperforming economy these circumstances will not change unless deliberate policy steps are taken too often the embedded educational and economic opportunities under penned by sustained investment in the economy to achieve this reform should be the Byward informing all our actions under Minister the Department of Public Enterprises should move with haste to stabilize and revitalize state and entities through a review of both appointments barring board members from procurement decisions and adopting a no-nonsense approach to corruption and possible privatisation at this point a person let me take the opportunity to congratulate members of the portfolio committee on public enterprises in the first Parliament for the sterling work in addressing state capture and corruption I am sure I speak the mind of my fellow committee members when I say we are all looking forward to the outcomes of the zonal Commission SL is remain key drivers of investment in infrastructure development and such there should be an acceleration of investments in key infrastructure such as rail and energy this will increase ensure that we increase the proportion of people with access to a greater cigarette to ninety percent by 2030 while encouraging non great options to those who can afford it I am encouraged by the increased gas exploration projects on our shores and increase in liquefied natural gas will help dessa diversify our energy mix and accelerate job creation in the energy sector with careful planning we can accelerate our gas to power projects to produce at least 20,000 megawatts of renewable energy in the next 10 years we must seriously consider that in fencing the electric economy of the 12 largest mr. policy municipalities resolve maintenance and refurbishment backlogs and develop financing plans alongside investment in human capital in order to ensure a reliable supply of coal for our existing power stations an industry compact must be entered into underpinned by comprehensive coal field planning on its part as commercial implement it's called strategy with includes considering reinvestment in cosplays minds to reduce this paint on curl and ensures security of supply a scum skull transfer on TV eternally are drowned in hinari ignition of uncomforta on the sculpt over in the door of the battle on him van Bastille in van was stealing was in the order finito so sterile Kamala on the local meth but his owner to miss even ownership Oliver alley price from Traviata states Bligh style can s cognition weapon Acosta difficult Ankara frowning Ferris is calm severe Smurfette hood in woodford line board federal ratings by a fan of his start and a scum a sniffle Alberni implants thoughts if announces on a hvala drug the department and portfolio committee on public enterprise must monitor transnih capital plans and implementation of commitments might on the port of sadhana provide other site on the efficiency of the african ports and commitment on the port of Durban provide oversight on the financial sustainability of the now find a lasting solution for the rising municipal depth for literacy t2s comp and quarterly site visits on ESO is major infrastructure grams the performance of ISA is of the last few years has been questionable with the duration in corporate governance for entities such as Eskom sex and now the 6th Parliament should consider investigations into the nel and transit as suggested by the Eskom inquiry report monitor and provide oversight on recommendations to be made by the state capture Commission led by Deputy Chief Justice Raymond Zonda the report in investigations on the Eskom inquiry and recommendations from the state capture inquiry should be followed up in conjunction with a portfolio committees on justice and conditional development and police are thank you [Applause] Thank You honorable sheperson no portfolio committee members or person of the portfolio on agro Minister Deputy Minister guests in the gallery fellow South Africans at home watching I'm reluctant to even start with my speech because the Proceedings of today the religious taping honorable members in this accursed house what we witnessed I'll come to that let me stick to my speech so that emotions don't get the best of me former chief executive of Escom Ian McCrae tells a personal anecdote about a discussion he had over lunch in the dying days of apartheid struggle icon and our fight of the Democratic South African Asian data Nelson Mandela McRea us when you take office why are you going to do with Eskimo Madiba gave him a simple answer nothing as long as you continue to produce cheap electricity and connect more black South Africans to the creature I'm relating the story because I want us as we commemorate Mandela month we must never lose sight of the purpose of assuming political office it is to save the people those paid to work for the people in Parliament have a tendency to staged walkouts today they've out mustered themselves in fact they resorted to confrontation members of the uff they need to fulfil the canal application to account to this house must answer to their constituencies Parliament is not a platform for the Arctic's this is not this is the National Assembly where the people exercise their power the current data for some of our stained own entities would have disappointed the generation of my however if we cast our I made on a year ago there is a reason to have hope in May 2018 when Parliament considered its budget vote most of our state-owned companies were under a cloud of allocation corruptions of state capture we are now witnessing a patina style fight back campaign its primary target is within Minister Pravin cotton who finds himself changing almost every week on Twitter based on all manner of allocations clearly put this portfolio is not for the faint-hearted or not a woman Tony were alive to the task honorable minister we do not fail our people to save as compton l underscore Transnet sa a and other companies in this public enterprise portfolio will have failed the generation of her freedom fighters and I'm not talking about the red beret red freedom fighters if it a fella talking about real freedom fighters we do not be distracted from a historic mission to save the people by those who resort to skull tree and undertake tender techniques those who employ faceless both to try our leadership on Twitter contrary to some misinformed statements on social media all our caters on the ANC on the mandates they act on the Mandate of the n see this Honorable Minister the Deputy Minister they are all active on the mandate and the mandate says government must take firm action to improve the governance and performance performance of SOC s by ensuring appointment of skill staff and qualified board members and protecting public institutions for improper interference members of ISO season and so is one here I want to show you we want you to come to Parliament and account on the public office they'd want to show you going to invite very soon honourable minister we need covenants in these offices we need stability in governance and we want to also call the department of public enterprise honourable minister as off to date that you need to look into the compensation you said it yourself that we've got acting T teaches we've got acting teaches as we speak this is not a pure would we want Aston it's one accountability one stability in public enterprise and I'm me to respond to manually who tells us who must stop this department it must not exist what a hogwash so Minister please attend to that we need compensation that this department is under spending on it it needs to spend and show the is covenants the FF is firmly in the corner of the thieves of tape captions under the guise of fighting the minister and his time that we call them are for who they are that they are on the other end is to pace with the new neoliberal daydream of privatization and selling off state asset and private firms neither of this agenda is generally seeking to do the developmental state of the Africa let me go to responses this bitch is just going to waste my time man Tony let me respond to you honourable you tell us that department must not exist you see that is more bill that you approach that seeks to privatize the transmission and distribution of electricity will not see the light of day weight of fluid we shall meet you in the committee and I want to reiterate what the typical sizing is true it's disruptive the statement you went to the committee when were adopting the report and you say this is the best committee it has ever performed in the last fitted ministration today you tell us this committee must cease to exist I mean what is that and you tell us the ideologies and we say the NZ does not have political ideology and political background let us ask you what is a political background neoliberalism will assist you we don't even understand what you're I told you we don't even know who from – under what backlogs what is your value system as well speaking we don't know your identity let us tell you the African National Congress identity and the ant entities the national democratic revolution we are building developmental stage you like it or if you don't like it we are going to rule and we're going to govern and estate owned entities they are going to continue let us ask you about the SEMA allocations of let us the one that you remove and take him to housing and you failed to also answer to the people of time this marriage of yours PFF that has come to fame that you don't want to speak about and tell people of South Africa that what is this marriage of convenience that you are doing right now you want to run away and you want to tell us the state owned entities I want to speak to this may of trying to speak their people of Soweto half-mast to Islam and all this they s comport and we want to say to you can you go to people of Soto and really deal and be one with the community can you deal with the issue of entitlement and make sure people get the service the an c– suppose this for their contributions this is just the beginning of the sixth administration and it's good to see that we are as lively as we should be and focus on the substance of what do we do with a so ease what kind of positive role can they play and we recognize that state capture has caused immense damage to reputation structure finances and operations of SOPs let's focus on how do we fix them and deal with those who are fighting against the recapturing of SOS and expose them for for what they are doing I also want to share the compliments that have been paid to the fifth Administration portfolio committee and hopefully and I'm sure the new portfolio committee will emulate the good work that they've done run day inquiries into these entities if we are falling short tell us where we are falling short indeed tell the boards and management themselves so that we get your help to actually fix them I think we must be reassured about the fact that the president and regards the fixing if you like and repositioning of SOE is particularly the bigger ones like Eskom Transnet NL sa a or the airline's more generally indeed Prosser as well as an absolute priority for the sixth administration and and his government – honorable Mazzoni let me say that there's there's a lot of room to debate whether SOE have a role to play in an economy or not all I want to do is to draw your attention to various OVC D studies as recently as last year or two which shows firstly how in the influence of SUVs is growing in the global economy and economy as well generally secondly if you let me continue you will have your chance at some stage secondly secondly that that in particular there are models around the world Temasek in one instance Tasik in another there are Scandinavia examples as well so I think let's talk more constructively about the role that a zoe's can play and if they are functioning well which is our job to get them to do so how we could actually make sure that they contribute in the right way to the economy more generally as all of us have spelt out I agree with the Honourable goomy there that maybe we will need to use the title we'll publish a book together SOE is the road to stability but it's not an easy road to stability it's a tough road when when an organization is infected by corruption and theft and bad culture then it takes a long time to actually fix it so there might be a and C people there might be people from other political parties as well the ANC is by definition not corrupt the you can get any individual who doesn't even belong to a political organisation that can be corrupt I think the essence is can we agree we need to fight corruption can we agree that we do not want unnecessary bailouts for SUVs can we agree that we want operational efficiency in SOS can we agree that we want financial sustainability if we agree on all of those things well let's put our hips together and see how we are we gonna get it that's a simple matter so so all we need to say is we can have our views about one department or two departments or multiple places with this this needs to be kept but at least around the areas that we agree let's find a way as a committee as the ministry and as the department of making sure that we do the work that is necessary of course it would lazy your point about cleaning up is an absolutely valid one and one that I think we've just all agreed to and none of us wants to countenance corruption but I think we need to go beyond just making speeches about corruption we must have the courage of our convictions to do that which is necessary to show up the corrupt people and not fall for fake news and fake narratives that are run through all kinds of digital media and other things as well this is the fake news world this is the world where you can mislead thousands if not millions of people as a result of things that you manufacture in some dark room somewhere with the help of some people like Berle Pottinger did and and we if we agree that we don't want South Africa to move in that direction and put those corrupt elements wherever they might be where they belong which is in jail at the end of the day and that's another thing that we are now agreeing with so if you want to create the ethical state that we speak of in kasi let's work together to actually do so do we have the political will honorable vessels to do the things that we saying yes we do and we have the president's backing and we indeed have ANC resolutions to back us as well there might be some doubting Thomases across all over the show in different parties but I can guarantee you that the political will is certainly there and you can see how some of us have to face the consequences of having to having to demonstrate the political will not just talk about it in May speeches about it but we'll come back to that but you make a very important point that is that let's work together to fight corruption and the kind of lawlessness that we saw earlier on in this house honorable and Guanaja makes an important point in distinguishing between hollows and doers so let's spend more time doing and working together than howling because I think all of us want Eskom to work all of us all of us want the culture of non-payment to be overcome and in recent times has been several incidents of violence in Soweto for example people resisting disconnections and so on and I think we should collectively across all the political parties if we have the national interest at heart call on the people of Soweto and those few that are involved in these activities to stop these activities because this is economic sabotage at the end of the day and it undermines Askins good efforts to begin to become financially sustainable at the end of the day SAA is certainly a challenge and so are the airlines and you can see that many airlines across the world are consolidating in one way or another and give us a few moments to not only look at the finances of the airlines but to critically examine whether there's an investment case that government has and how do we go forward what we do have a commitment from government on across previous administrations as well is to invite a strategic equity partner into the ese a fold but you can only do that when I say isn't good enough health to attract a partner so we can't have partners being attracted in in in the current state as we actually see it there are many examples around the world I think shake among the Honorable Sheikh Imam has actually left us with suv's work well and their management by government works well as well so look at SAS it the organization that has management and control over 96 Chinese SOPs and look at their performance particularly in the last five years or so and they are they are judged by financial indicators and opera indicators and some of them are the biggest companies that you'll find in the Fortune 100 those of you that are actually familiar with that the you know maybe we need to lock up some people too in order to get the things that we want to do at the end of the day so honorable remembers what i'm saying and i concurred honorable swat as well that the time for prosecutions has come the time for putting people to the test of being in front of a judge has also come and you cannot have endless exposures undertaken by investigative journalists about all sorts of transactions happening and the way in which these people must the activities is by bullying and shouting down other people in in various fora under honorable concur there should not be any Soweto exceptionalism as i pointed out earlier on and the effect of SQL restructuring as we said will be covered in a paper and i outlined for you I think he's gone already cheapest and the kind of future that we see for Eskom and once we have that we can start debating that in this forum as well I want to agree with honorable gue Mary that perhaps in addition to recovering the six hundred million that we see currently there needs to be more firm action taken by the asset forfeiture unit firstly to freeze the bank accounts of people who are culpable of theft from the state but secondly to seize the assets that they've bought with stolen money as well and the kind of luxurious lifestyle that they lead from stolen money so perhaps we need to have some discussions with the asset forfeiture unit in this particular regard to ensure that the right things happen to these people that are concerned and who have been extracting public funds for their own benefit vulnerable marais boards have already been extracted from any involvement in procurement you'll be happy to hear Eskom is certainly setting aside money in the current year to invest in cost-plus minds and take a u-turn in this particular regard after the bad effects of the whole optimum Gupta saga that it has been through which was exposed by the committee in the fifth administration and certainly keep an eye on the capital expenditure Transnet because that's where a lot of the theft actually took place so honorable members in conclusion thank you for your various contributions thanks once again to board members and the leadership of the various SOS and indeed the department itself which has worked under very difficult circumstances and I want to conclude by saying that the choice that we have is either perpetual conflict and destabilization of SUVs and institutions for perceived short-term interest or a broader commitment to a common national interest that makes South Africa great and a force for good and a force for human dignity for all South Africans thank you very much thank you and thank you honourable members their house is officially again thank you there's also sitting that is taking place around here National Treasury is taking place here

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