PRESS STATEMENT BY MINISTER S N SIGCAU, MP, MINISTER FOR PUBLIC ENTERPRISES
The Government of National Unity has started a process through which State assets and enterprises are to be restructured. This project is considered to be a key element of the transportation process of the public sector.
Critical in the restructuring agenda is the effective and efficient implementation of the RDP programmes. Among others the objectives for the restructuring of State assets and enterprises have been given as follows:
1. To increase the availability of financial and skills resources to meet socio-economic requirements for the country. 2. To empower disadvantaged employees and communities. 3. To improve efficiency and effectiveness in the utilisation of State assets and enterprises. 4. To reduce State debt. 5. To redefine and reorient the role and focus of the public sector, and 6. To contribute towards the restructuring of the South African economy as a whole.
Privatisation is but one element within the overall process encompassing the restructuring of State assets and public enterprises. No specific public enterprise has been identified and targeted for privatisation as yet.
Privatisation is viewed as one of the available strategic instruments to be used to achieve the country's social, economic, political and technological development needs. Its usefulness will be evaluated against all other available strategic instruments. It is important for the public to realise that restructured enterprises will be represented by different ownership (equity) structures and Government control. Critical goals to be considered to justify the restructuring of any State enterprise will be as follows:
1. To provide additional financial and technological resources so as to enable privatised (partially or fully) public enterprises to meet the ever expanding needs of the citizens of the South Africa as spelt out in the Reconstruction and Development Programme, and to improve the competitiveness and efficiency of these enterprises.
2. To effect the economic empowerment of disadvantaged communities, thus contributing to the democratisation of the ownership structure of the South African economy.
3. To reduce the Government financial burden associated with supporting enterprises that cannot support themselves.
The values and principles to guide the restructuring process include:
1. That all stakeholders will be fully participant in policy formulation processes.
2. That organised labour in general and employees of affected public sector organisations will be fully participant in all policy formulation processes.
3. That the restructuring programme should be tailored to the specific political and economic circumstances of the country, and that it should be appropriately designed technically as well as politically.
4. That specific goals should be formulated for the participation of disadvantaged groups, communities and individuals in the resulting ownership structures, in the distribution and utilisation of proceeds from sales of public enterprises.
5. Restructuring should not be allowed to lead to the reduction of affordable services to the poor and disadvantaged communities.
6. The capacity of the disadvantaged communities, including entrepreneurs, to participate and benefit fully in the privatisation programme should be ascertained and enhanced.
The Ministry of Public Enterprises wishes to assure the public and all the stakeholders with regard to State assets and enter- prises, that the Government of National Unity is committed to handle the restructuring programmes in the most responsible manner and that it will not sacrifice the interest of deserving stakeholders. There is absolutely no cause for alarm and no need for panic by any segment of our communities on this matter.
Contact person: Prof SR Shabalala, Head: Office for Public
Enterprises - Tel: (021) 461-1469
17 March 1995