The Public Servants Association (PSA) on Monday expressed its concern over the future of employees at the Department of Public Enterprises (DPE) amid reports that plans for its closure are at an advanced stage.

In his State of the Nation address this year, President Cyril Ramaphosa confirmed the closure of this department and the PSA has also noted the reiteration given by Public Enterprises Deputy Minister Obed Bapela, when he added that the department will no longer exist after the 2024 provincial and national elections.

This is in accordance with the government’s plan to manage several departments and reduce the bloated Cabinet.

PSA maintains that labour was not informed of the developments and it has labelled the department’s failure to consult with its employees before issuing media statements on this matter as “reckless and irresponsible”.

“The PSA respects government’s decision to close the DPE but is sceptical that this will address the challenges faced by various State-owned enterprises (SOEs). The dismal failure of SOEs is often a result of bad governance, corruption, and political interference. The closure of the DPE is, therefore, unlikely to offer any solutions to the failing SOEs. The reasons provided by government to justify the DPE’s closure are unconvincing and puzzling,” it said in a statement.