North West SOEs to be rationalised under NWDC - Premier Mahumapelo...

The Bokone Bophirima Provincial Government is determined to have super state-owned provincial entities which will drive the economy in the province.

Premier Supra Mahumapelo said this in a meeting with Chairpersons and Chief Executive Officers of State-Owned Enterprises that are based in the province in Brits yesterday.

Most State-Owned Enterprises (SOEs) in South Africa generally tend to experience problems of underperformance and loss of revenue. Some of these entities have routinely been bailed out by government as they struggled to retain acceptable levels of profitability.

However, Premier Mahumapelo believes that rationalising SOEs in the province under North West Development Corporation (NWDC) will change the situation.

He says the move will ensure that these entities are more focused, well-managed and well positioned to drive development and economic growth in the province.

“We have taken a decision to rationalise State-Owned Enterprises in line with the pronouncement by the President and the Minister of Finance.

“We must create jobs, deal with poverty and inequalities in our society and SOEs have a significant role to play in helping us achieve these. 

“Hence Exco has taken a decision that SOEs must all reside under NWDC which will become an anchor state owned entity  to drive the economy in the province, said Mahumapelo.

Acting CEO of Mmabana Arts, Culture and Sports Foundation Sipho Nkese said they welcomed the decision with both hands.

“This kind of consolidation is going to assist with regard to collaboration efforts and control. This will strengthen governance and help improve service delivery,” said Nkese.

It is expected that the process to rationalise these entities under NWDC will be completed by December this year.