Submission by the Dullah Omar Institute to the National Assembly Portfolio Committee on Planning, Monitoring and Evaluation on the National State Enterprises Bill [B1 – 2024]

This submission by the Dullah Omar Institute critiques the proposed National State Enterprises Bill, arguing that its centralised governance model may deepen existing challenges in South Africa's state-owned enterprises (SOEs). While the Bill rightly aims to strengthen operational efficiency and board accountability, it does so by centralising power in the Presidency through a holding company (SAMSOC), without sufficient checks, transparency, or stakeholder participation. The submission highlights the Bill’s lack of clear criteria for due diligence, accountability mechanisms, or transparent board appointment processes. Drawing comparisons with Singapore’s Temasek model, the Institute argues that transplanting such models without regard to South Africa’s constitutional and political context is misguided. The submission stresses that SOE reform must be rooted in the values of section 195 of the Constitution—particularly transparency, accountability, and public participation. It recommends dispersing decision-making powers, introducing objective and transparent criteria for board appointments, and ensuring meaningful stakeholder inclusion. The current draft, it warns, risks reinforcing oligarchic tendencies and undermining democratic oversight, rather than restoring public trust in SOEs.