Committee Report on the 2009/10 Annual Reports of Department of Public Enterprises and state owned enterprises: adoption; outstanding minutes: adoption
Public Enterprises
07 March 2011
Chairperson: Mr P Maluleke (ANC)
Meeting Summary
The Committee adopted the outstanding minutes of meetings held from July 2010 until February 2011 with minor grammatical corrections referred to the Committee Secretary.
The Committee’s report on the annual reports 2009/10 of the Department of Public Enterprises and the state owned enterprises was discussed and suggestions and amendments referred to the Committee Secretary. Checks on recommendations and outcomes were stressed upon in order to facilitate delivery of these recommendations. The emphasis on job creation in the State of the Nation Address, the differentiation of vacant posts and creation of posts were duly noted. Expansions of councils were noted as a good example of creating employment opportunities. The state owned enterprises would be audited on the recommendations and outcomes of delivery of promises. Vacant positions and created positions should be differentiated.
Eskom would have its new Chief Executive Officer review and renegotiate contracts in terms of the Megaflex prices. The report also indicated Eskom’s losses in regard to illegal electricity connections. Eskom’s task was much greater than keeping the country’s lights on.
Meeting report
Introduction
The Chairperson welcomed all present at the meeting.
Adoption of outstanding minutes
The minutes of previous meetings handed out were in compliance with the format agreed upon by all Members. The amended minutes were perused by the Chairperson with the support of all Members present.
Dr G Koornhof (ANC) pointed out that the July 2010 Presidential Review was not a Commission but a Committee.
Ms G Borman (ANC) wished for clarity on the termination of Eskom’s Chief Executive Officer (CEO).
The Chairperson clarified that the CEO’s service contract was terminated but the contracts during the period of service would be in operation.
The minutes of 14 September 2010; 13 October 2010; 21 October 2010; and 22 October 2010 were adopted with correction of minor grammatical errors.
The minutes of 09 February 2011 and 22 February 2011 were also adopted.
The 15 February 2011 meeting was in direct response to President Zuma’s State of the Nation Address (SONA) in respect of the creation of employment opportunities.
Mr P van Dalen (DA) raised the question of the copper and electricity theft problem in regard to the forthcoming 15 March 2011 meeting.
The Chairperson provided clarity. It would be a joint meeting with the Portfolio Committee on Energy at which Eskom would be present.
Dr S van Dyk (DA) concurred that the discussion will be on the availability of power to rural developments.
Committee’s report on the annual reports 2009/10 of the Department of Public Enterprises and the state owned enterprises (SOEs): consideration and adoption
The Committee’s report on the annual reports 2009/10 of the Department of Public Enterprises (DPE) and the state owned enterprises was discussed and amendments suggested before tabling in the National Assembly.
Ms C September (ANC) suggested the heading “Committee questions and comments” should include the recommendations. This was accepted by all members and noted as an amendment.
Dr Koornhof suggested the separation of the Department’s Annual Report from the Annual Reports of the SOEs by adding a sub-heading indicating the beginning of the SOEs Annual Report.
Other members agreed and the amendment was noted by the Committee Secretary.
Ms Borman and Dr Van Dyk stressed on checks on follow up of recommendations.
Mr K Dikobo (AZAPO) suggested the stipulation of the difference between a recommendation and a suggestion.
Dr Koornhof noted the deficiency in the document of the DPE’s and SOEs’ resolutions and outcomes.
The amendment was referred to the Committee Secretary to be added to the document.
Both Mr A Mokoena (ANC) and Mr Dikobo placed emphasis on the Parliament’s defined role in adopting recommendations. Parliament did, however, hold the responsibility of oversight.
The Chairperson in agreement with all the other Members discussed the issue of vacant posts and created posts. Vacant posts should be filled and not be categorized as newly created posts.
Dr Van Dyk elaborated on how the increasing of job opportunities was closely tied to expansion of councils. This created job opportunities and the maintenance of the cities created long and short term contracts which meant the transfer of skills.
He also suggested checks to hold SOEs to account on promises delivered. He added this should be done at the end of the financial year.
Dr Koornhof suggested that once the Committee’s report was tabled in Parliament, the SOEs should be sent copies.
Mr Van Dalen added that close checks must be kept on enterprises which fired people and then re-hired them to appear that they were creating job opportunities.
Mr Van Dalen noted the statement made by Eskom’s new Chief Executive Officer, Mr Brian Dames. Mr Dames had said that Eskom would sort out the contracts before the year’s end and where necessary re-negotiate contracts. Mr Van Dalen suggested a follow up should be done on the outcome. This was especially important in respect of Eskom’s finances.
The Committee Secretary was instructed to make the addition to the Committee’s report.
Members agreed to the corrections and additions.
The Chairperson adjourned the meeting.
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