In addition to other measures, the government is switching to the use of state-owned entities to collaborate with private sector companies.
FILE: Minister of finance Nhlanhla Nene. Image: GCIS.
CAPE TOWN – Minister of finance Nhlanhla Nene says that the distressed state-owned companies (SOCs) of the country need sincere and competent people to lead them, but they also need to be strengthened as institutions to ensure their future in the long term .
Nene spoke to the National Council of Provinces on Tuesday afternoon and outlined the revision that the government has made to stabilize the SOCs, some of which are on the verge of insolvency.
"Given the pressing situation of some of these state-owned companies, we need capable and morally sincere women and men who can parachute in state-owned companies to stabilize them.
"But we must not look for heroes to fall behind the enemy lines without focusing on the institutional frameworks that will help secure the long-term future of state-owned enterprises."
In addition to other measures, the government uses state-owned entities to collaborate with private sector companies, enable alternative financing for infrastructure investments and enable faster and more efficient delivery.
(Edited by Zamangwane Shange)