President Cyril Ramaphosa
PResident Cyril Ramaphosa on Wednesday defended the increasing centralisation of power in the government office, saying he was responsible for ensuring that the government worked efficiently and in the overall interest of the country.
“Some have rightly said the president has 'convening powers', but it is much more than that. It is about ensuring inter-government cooperation and execution,” Ramaphosa said in response to a debate on ministerial budget votes.
“Some in this House have suggested that we are creating a 'super-presidential' that would subsume the roles of each government department. On the contrary, the presidency complements and strengthens the work of the whole government.”
The president drew a connection between his vision for a multi-party coalition government and his decision to place more organizations within the Presidency, including oversight of state-owned enterprises (SOEs).
Thirty years after the end of apartheid, the socio-economic ills that persist must be addressed because “for too many South Africans, the promise of a better life has yet to be realised”.
He said he was talking about the homeless, parents going hungry to feed their children and college students who can't find work.
“The plight of those who are poor, unemployed and living in great hardship deserves our attention.”
President Ramaphosa said the nation has the will, the skills and the resources to create a better life for all.
“And we have an opportunity, through this national unity government, to come together to make this vision a reality.”
He added that this is the “driving force” of this presidency.
“The Constitution requires me as president to promote all that is conducive to national unity and the development of the republic.”
“In carrying out this constitutional duty, I consider it my overriding duty to work with all of us to create a fairer, more equal, more compassionate and more humane society.”
On Tuesday, during debate over the presidency's R612-million budget, the Democratic Alliance's new deputy power and energy minister Samantha Graham questioned President Ramaphosa's decision to place Eskom and all other state-owned enterprises in the presidency.
She said the 2022 decision to create a Ministry of Electricity in the Presidential Office to quickly respond to the energy crisis had “certainly borne fruit,” and that the decision announced in the new Cabinet to make it an independent ministry that would also be responsible for energy policy was wise.
“The president took electricity out of his jurisdiction, but he brought state-owned enterprises into his jurisdiction,” Graham added.
She said Eskom would now be placed under the Planning, Monitoring and Evaluation Department rather than the new department, despite initial prospects of direct oversight of the power utility.
It “makes perfect sense” for the power organization to be located within the ministry, she added.
Graham said it was not a good sign when President Ramaphosa confirmed in his opening speech of Parliament last week that ownership of all state-owned enterprises would be concentrated in a new holding company.
“Our assessment is that this is simply another model of a failed public enterprise sector and will create more unnecessary bureaucracy. The cost implications would also be astronomical and unjustifiable in an economy struggling to emerge from the current financial quagmire,” Graham said.
“While a presidential system may have been the best tool for emergency intervention in the electricity crisis, it is not necessarily the answer for failing state-owned enterprises.”
To remedy these, she argued, each needs to be identified within the relevant line department.
The National SOE Bill, which provides for the establishment of the holding company, was introduced in Parliament in January.
Asked on Wednesday who the report would ultimately be made to, the Blue House said: Mail & Guardian “This law will clarify reporting lines.”
In his speech, President Ramaphosa said the holding company model was international best practice and the department of planning, monitoring and evaluation would be responsible for all processes required for its establishment.
The ministry will set up a dedicated “SOE Reform Unit” within his office to oversee the work, but public utilities previously under the State-Owned Enterprises Bureau, which he abolished, will report to their respective direct departments on policy and regulatory matters.
He said while some lawmakers have downplayed the work being coordinated at the Presidency and been skeptical of the size of its budget, the steps his office has taken, and the reforms pushed through Operation Vulindlela, the Presidency's implementation arm, have produced tangible results.
“These mean more affordable and reliable electricity, cleaner water, more efficient trains and lower data costs. Driving these reforms has cost tens of millions of rands but has delivered more than R500 billion in new investment into our economy,” he said.
As the Commission of Inquiry into State Takeover lamented, the presidency is not overseen by a dedicated parliamentary portfolio committee, and several speakers in Tuesday's debate called for the issue to finally be addressed.
After touring the UK parliament, President Ramaphosa said he supported the recommendation by members of the parliamentary rules committee that the portfolio committee on planning, monitoring and evaluation should take on this role.
“I believe what the delegation recommended is consistent with how the president is accountable to Congress.”