SOUTH AFRICAN STATE-OWNED ENTERPRISES REPORT PROFITS TOTALLING 5.4 BLN RAND

State-owned enterprises (SOEs) owned by the South African Department of Public Enterprises have so far recorded a total profit of 5.4 billion Rand (about 415 million USA dollars) for the 2015/16 financial year.

The analysis of the performance of State-owned Companies (SOCs) clearly shows that these companies are contributing positively to the South African economy and they are advancing the developmental obligations of the State, says Public Enterprises Minister Lynne Brown.

Briefing the Parliamentary Committee on publ;ic enterprises in Parliament here Wednesday, she said the SOCs were creating direct employment of about 120,000 people.

All of the SOCs within my portfolio have continued to operate and meet the mandates that they were established for. (Power utilit) Eskom is keeping the lights on, (logistics group) Transnet is moving freight that is important for the South African economy, Brown said.

She said the SOCs in her portfolio had been able to maintain positive external audit outcomes, with the exception of budget airline SA Express (SAX), which faced profitability and liquidity challenges.

The airline had delayed raising loans since March 2015 and is unable to fulfil its debt payment obligations. Many of SAX's aircraft are grounded, because of maintenance issues.

Brown said: Improving governance is at the core of the SOC reform and will remain an important part of SOCs' performance assessment. The department continues to strive to minimize vacancy rate at the board as well as executive levels."

The department has also developed a logical planning, monitoring and evaluation framework that outlines the key steps in the exercise of the oversight mandate.

Our SOCs are financially viable and have not defaulted on any loans guaranteed by the Government of South Africa. They continue to raise funding in both domestic and international markets at very favourable and competitive rates, Brown said.

Source: NAM NEWS NETWORK

RELATED POSTS