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The Portfolio Committee on Public Enterprises was briefed by Minister of Public Enterprises, Ms Lynne Brown, on organisational issues at state-owned enterprises. The Committee welcomed the open and frank discussion with Ms Brown on these matters.

The Committee welcomed the statement made by the Minister and hopes that a commission of inquiry will be established to look into and investigate further findings that relate to the former Public Protector’s State of Capture report.

Briefing the Committee, Ms Brown said it remained her view that there should be a commission of enquiry established into the State of Capture report, so as to put matters on the table, but that this would be the prerogative of the President.

The Committee was of the view that a commission of enquiry into state capture is a move in the right direction, as it could address allegations and violations mentioned in the report.

On the Denton report, commissioned by Eskom in 2015 and undertaken by law firm Dentons, the Committee noted with concern the release of the report, which was highly censored.

The Committee welcomed the recruitment process undertaken to ensure that the vacancy of Eskom CEO is being filled. The Committee noted with concern the high number of acting CEO’s in public entities, a view shared by Minister Brown during her presentation before the Committee. The Committee was of the view that this has negative effects on organisations’ operational and governance structures.

The Committee said it was happy that Eskom is continuing to supply the country’s electricity needs and welcomed Ms Brown’s announcement that South Africa has an excess of energy. The Committee was of the view that excess energy and electricity will stimulate economic growth.

On Denel, the Committee raised concern about its performance. Members of the Committee expressed disappointment on the Denel Asia scandal as it caused a breakdown in trust. The Committee indicated that they had asked for a joint meeting with Denel, its board and National Treasury to explain first-hand who was telling the truth.

With regard to municipal debt, the Committee asked if there has been progress in recovering the R9.5bn. Members of the Committee appealed that Eskom should be lenient to defaulting municipalities.

Issued by Parliamentary Communication Services on behalf of the Chairperson of the Portfolio Committee on Public Enterprises, Ms