Draft National State Enterprises Bill 2023 Submission of Public Comment to the Department of Public Enterprises

The Public Affairs Research Institute (PARI) and Corruption Watch submitted public comment on the Draft National State Enterprises Bill 2023, arguing that while the Bill's objectives to separate policy from ownership and reduce political interference are supported, it lacks sufficient checks and balances to prevent state capture and systemic mismanagement.

• The Draft National State Enterprises Bill 2023 aims to establish a holding company to separate policy and regulatory functions from ownership, reduce political interference, and improve the management of state assets. However, the authors argue the Bill does not sufficiently prevent the appointment of political allies to intermediary positions, which they claim has historically led to "devastating consequences for politics, public administration, and development."
• The authors criticize the Bill for granting the President or their delegate sole power to act as the shareholder for the Republic of South Africa, with appointment powers constrained only by s68 of the Companies Act, No. 71 of 2008. They argue that because the public interest in state enterprises is "diffuse and collective," stronger checks and balances are required than those provided by the Companies Act, which is designed for profit companies.
• To prevent state capture, the authors propose adapting the Zondo Commission's recommendations by establishing a statutory "integrity" appointment and oversight committee. This committee would use public hearings to verify the professional and reputational requirements of candidates for the Board, CEO, CFO, and Chief Procurement Officer of the holding company, and would investigate misconduct by board members or senior executives.
• The authors identify several omissions in the Bill, noting it provides no timelines for phasing in state-owned enterprises as subsidiaries, no criteria for which entities should be transferred, and does not apply to entities under line departments. They conclude that the Bill fails to provide the "single, primary, and more comprehensive piece of legislation" recommended by the Presidential Review Committee in 2013.

APA

Public Affairs Research Institute (2023). Draft National State Enterprises Bill 2023 Submission of Public Comment to the Department of Public Enterprises. https://pari.org.za/wp-content/uploads/2023/10/PARI_CW_Submission_SOEs_Oct23_v187.pdf

Chicago

Public Affairs Research Institute. Draft National State Enterprises Bill 2023 Submission of Public Comment to the Department of Public Enterprises. 2023. https://pari.org.za/wp-content/uploads/2023/10/PARI_CW_Submission_SOEs_Oct23_v187.pdf.

Wikipedia

{{cite press release |author=Public Affairs Research Institute |title=Draft National State Enterprises Bill 2023 Submission of Public Comment to the Department of Public Enterprises |date=14 October 2023 |url=https://pari.org.za/wp-content/uploads/2023/10/PARI_CW_Submission_SOEs_Oct23_v187.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{publicaffairsresearchinstitute2023draft, author = {{Public Affairs Research Institute}}, title = {{Draft National State Enterprises Bill 2023 Submission of Public Comment to the Department of Public Enterprises}}, publisher = {Public Affairs Research Institute}, year = {2023}, month = oct, url = {https://pari.org.za/wp-content/uploads/2023/10/PARI_CW_Submission_SOEs_Oct23_v187.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }