Public Enterprises Portfolio Committee: Oversight Report & Committee Programme

Meeting report

Portfolio Committee on Public Enterprises Draft Programme
The Chairperson tabled the Committee Programme, and suggested that the Programme be dealt with in four week cycles. She called for suggestions on what should be placed on the Programme for the next four weeks.

Ms F Hajaig (ANC) suggested that perhaps the Committee could start with Eskom, thereafter South African Airways (SAA), Airports Company of South Africa (ACSA) and the Airports Authority. She said that this would most probably fill the Programme up until the Easter break.

The Committee agreed.

The Chairperson recommended that the Committee should isolate the most pertinent issues. National Energy Regulator of South Africa (NERSA) was to make an announcement on the percentage tariff increase on electricity later the day, which would probably result in the Committee needing to discuss issues arising from it.

Ms Hajaig said that security of supply of electricity for the World Cup and beyond was important.

Ms Mentor said that Mr M Oriani-Ambrosini (IFP), who was not able to be personally present at this meeting, but was represented by a staff aide, Mr A Mitchell, had raised funding model issues of Eskom. It was a very important issue. Although it could not be discussed until after Eskom had appeared before the Committee, it was considered a step in the right direction. Mr Mitchell was asked to inform Mr Oriani-Ambrosini of what had been decided.

The Chairperson pointed out that during December 2009 there had been three airline crashes involving SA Airlink. It had been claimed that bad weather was responsible for the crashes. Ms Mentor noted that this might not be the full excuse as there seemed to be a problem with their planes.

Ms Hajaig said that there was apparently a problem with the runway in George, where another incident had occurred on the previous day.

The Chairperson said that ACSA and the Aviation Authority would be called before the Committee to explain why SA Airlink was so prone to crashes. SAA would also be called to answer to allegations regarding price hikes in ticket prices for the upcoming 2010 FIFA World Cup, and to consider whether there might have been price collusions. Other issues include airport taxes, airport safety and security and jet fuel security of supply.

The Chairperson suggested that Transnet be called as well. The sequence of who would present first would still have to be worked out.

Ms L Jacobus (ANC) was concerned that the presentations should not be made in the presence of the later entities, to avoid presentations being “doctored” depending on what had been said earlier.

The Chairperson suggested that all presenters be asked to submit their presentations well in advance of the meeting, to avoid alterations.

Mr G Koornhof (ANC) suggested that presenters be called to one meeting, and that issues be ringfenced by members.

The Chairperson agreed that issues would be ringfenced.

Mr Koornhof said that the issue of airport taxes not only applied to SAA but to other airlines as well. The Committee needed to be specific on what issues would need to be elaborated on by the presenters.

The Chairperson suggested focussing on SAA for now, as other airlines would be called before the Committee at a later time. The Committee could perhaps take a sample group of the airlines.

Mr Koornhof said that correspondence had been sent to the Department of Transport and the Department of Public Enterprises on the issue of airport taxes.

The Chairperson said that a joint meeting would be held with the Portfolio Committee on Transport, the Department of Transport and the Department of Public Enterprises.

Mr M Nhanha (COPE) said that the Transnet issue of port fees was once again raised.

The Chairperson agreed that the issue would be discussed again. She said that even though SAA, Transnet and Eskom were to appear before the Committee during the present session of Parliament, they needed to appear before the Committee in the next quarter as well.

The Chairperson felt that the Department of Public Enterprises (DPE) also had to appear before the Committee to shed some light on its vacancy rates and on risk management, as the latter had not been fully elaborated on. The DPE would be summoned before the Committee again in the second quarter.

Mr Koornhof pointed out that the Department owed the Committee a two-day workshop. The Committee also needed its own workshop to figure out the way forward for the next four years.

The Chairperson said that the workshop with the Department needed to be held in this quarter of the Committee’s work session. She noted that the Department had paid a sum of almost R800 000 to service providers for a 5-day workshop. Only three days had been utilised thus far, and if the Committee could use the remaining two days before the financial year end this would avoid the situation where otherwise those two days might be reflected as fruitless expenditure.

Ms Jacobus asked if the Department’s budget could also be interrogated during the 2-day workshop.

Mr Nhanha suggested that a mandate be given to the Chairperson to approach the Department and consultants in order to discuss what would be done during the 2-day workshop.

The Chairperson said that the workshop had only covered five of the state owned enterprises and not all nine. She said that she would discuss the issue with the Department and consultants.

The Chairperson then turned back to the programme, and noted that Eskom, SAA and Transnet would once again be invited to cover different issues. Eskom’s funding model was one such issue. Transnet’s pension fund rules needed to be considered. The DA had asked to make a presentation on the Pension Fund Act and time for it would be allocated after the meeting with Eskom the following week.

Ms Hajaig said that it would be useful for members to have copies of both the Pension Fund Act and its Regulations.

The Chairperson requested the Committee Researcher to furnish the requested documents to members.

The Chairperson then told Members that there was a parliamentary committee dealing with training of Members, for which funds were available, and suggested that training in matters such as energy, aviation and transport, all of which were relevant to the Committee’s work, might be useful to enable Members to better understand the issues. The training was voluntary and courses could be suited to members’ needs.

Ms Jacobus suggested that perhaps a short course on budget analysis would be useful.

The Chairperson seconded this suggestion.

Possible oversight and study visits
The Chairperson mentioned that the Committee had funds available for international trips. The funds would have to be utilised before the end of the Committee’s financial year. She suggested that perhaps a trip to Venezuela and Algeria might be useful. France and Angola were other options as well. The funds should be utilised, and not forfeited.

Mr Koornhof supported the suggestion of international trips but said more specifics were needed. He felt it important to improve corporate governance.

Ms Mentor noted that visits to France and Algeria were important because these countries, like South Africa, had chosen the path of nuclear and renewable energies. Trips to South America were equally important in order to see what this continent was doing in regard to energy.

Ms Jacobus suggested perhaps a joint study tour with the Portfolio Committee on Energy could be undertaken.

The Chairperson said that it could be considered.

Ms Mentor informed the Committee that R10 000 had been allocated to her for the entertainment of guests of the Committee. She asked that Members wishing to host anyone on behalf of the Committee would need to inform her, and she would in turn keep members informed on how the funds were being spent.

Ms Hajaig asked whether there was a budget for the international trips.

The Chairperson said that there was R250 000 available. It had to be used before the financial year end. The Committee needed to plan the trips as soon as possible.

Mr Koornhof suggested that the Chairperson draft a proposal regarding the international trips.

Draft Report on oversight visit to State Owned Enterprises 16 November–19 November 2009
Ms Mentor was perturbed by the fact that certain Members of the Committee had not received the oversight report prior to the meeting, and asked the Committee Section to ensure that Members had copies of documents prior to meetings, to allow sufficient time for perusal.

She noted that the report contained minor typographical errors, and had been restructured.

Mr Koornhof and Ms Jacobus suggested that those members who had been on the oversight visit should propose additions and corrections to the Report and forward them to the Committee Secretary.

The Committee agreed, and the adoption of the report would stand over to the following week.

The meeting was adjourned.