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Transfer of SOEs delayedImage may be NSFW.
Clik here to view. State-owned enterprises remain under the ambit of their line ministries, as proposed amendments to the Public Governance Act still linger in the background.
This process is delaying the transfer of state-owned enterprises and the proposed implementation of a hybrid governance model that will classify state-owned entities into various categories.
Explaining the delay, the minister of public enterprises, Leon Jooste, said this week: “To implement this governance model we need an amendment to the Public Enterprises Act and we were hoping to table this amendment in 2016 during the last sitting of parliament.
“The amendment will make provision for the ministry to be empowered to classify public enterprises according to three new categories, namely commercial public enterprises, non-commercial enterprises and financial institutions and extra-budgetary funds.”
Pending the transfer, Jooste explained that business would continue as usual.
“The important issue I want to communicate is that in the interim period the status quo remains as before. The ministry shares the responsibility with the various line ministers, as has been the case under the State-Owned Enterprises Governance Council.
“This means that the line ministries have the shareholder responsibilities while the Public Enterprises Ministry is responsible for governance and related directives and remuneration matters.
“The new remuneration guidelines have been finalised and will herald the introduction of an integrated performance-based system for the first time.
“The new guidelines are incentivised with basic salaries and long-and-short-term performance-based incentives. New performance agreements will be signed with individual board members and these contain measurable key performance indicators (KPIs),” Jooste said.
OGONE TLHAGE
Clik here to view.
()/assets/images/3454/transfer-of-soes-delayed2016-12-160.jpg)
Transfer of SOEs delayedImage may be NSFW.Clik here to view.
State-owned enterprises remain under the ambit of their line ministries, as proposed amendments to the Public Governance Act still linger in the background. This process is delaying the transfer of state-owned enterprises and the proposed implementation of a hybrid governance model that will classify state-owned entities into various categories.
Explaining the delay, the minister of public enterprises, Leon Jooste, said this week: “To implement this governance model we need an amendment to the Public Enterprises Act and we were hoping to table this amendment in 2016 during the last sitting of parliament.
“The amendment will make provision for the ministry to be empowered to classify public enterprises according to three new categories, namely commercial public enterprises, non-commercial enterprises and financial institutions and extra-budgetary funds.”
Pending the transfer, Jooste explained that business would continue as usual.
“The important issue I want to communicate is that in the interim period the status quo remains as before. The ministry shares the responsibility with the various line ministers, as has been the case under the State-Owned Enterprises Governance Council.
“This means that the line ministries have the shareholder responsibilities while the Public Enterprises Ministry is responsible for governance and related directives and remuneration matters.
“The new remuneration guidelines have been finalised and will herald the introduction of an integrated performance-based system for the first time.
“The new guidelines are incentivised with basic salaries and long-and-short-term performance-based incentives. New performance agreements will be signed with individual board members and these contain measurable key performance indicators (KPIs),” Jooste said.
OGONE TLHAGE
