Stop State Capture 2.0 and Reject the National State Enterprises Bill

The proposed National State Enterprises Bill (B1—2024) is a dangerous step toward even more unchecked state control over South Africa’s economy. It introduces a State Asset Management SOC Ltd (SAMSOC) to centralise control of key state-owned enterprises (SOEs) like Eskom, Transnet, SAA, and more — effectively placing them under a single government-controlled super-company. This Bill is nationalisation layered on nationalisation, concentrating power in the hands of the state at the expense of accountability and public oversight.
If this Bill is passed, all state enterprises listed in Schedule A — including Eskom, SAA, Denel, and others — will be transferred to a single holding company controlled by the President. This risks entrenching political interference, eroding transparency, and putting essential services and critical infrastructure under greater political control.

South Africa requires less nationalisation, not more.

Key Concerns with the Bill:

1.    Centralistion of Power

• The Bill creates State Asset Management SOC Ltd (SAMSOC), a super-company with control over vital SOEs.
• The President has direct authority over SAMSOC, with the power to control board appointments and major decisions.
• This concentration of power invites the same political interference that led to the collapse of Eskom and other SOEs.

2.    Weakens Accountability

• The Bill allows for SOEs to operate outside the oversight of the Public Finance Management Act (PFMA), which governs how public funds are managed.
• SOEs will no longer be directly accountable to Parliament, giving the executive unchecked power over billions of rands in public assets.
• Past scandals of mismanagement at SOEs like Eskom, Transnet, and SAA demonstrate the dangers of weakened oversight.

3.    Threats to Property Rights

• The Bill allows SAMSOC to transfer land and property between SOEs without public scrutiny or taxes (Chapter 5, Sections 18 & 19).
• This unchecked power could result in public assets being sold, leased, or otherwise transferred behind closed doors.

4.    Risks of Corruption and State Capture 2.0

• By giving the President and SAMSOC power to appoint directors and executives, the door is wide open for political appointments.
• South Africa has seen how political interference contributed to corruption and the looting of SOEs like Eskom and Transnet. This Bill repeats those mistakes.

5.    Exclusion of Public Participation in Decision-Making

• The Bill proposes that the “National Strategy” for SOEs will be developed by the President and a Presidential Advisory Committee.
• The role of Parliament and civil society in shaping this strategy is limited, reducing the opportunity for public participation in critical economic decisions.

6.    Higher Costs for Taxpayers

• SAMSOC’s operational costs will be funded by taxpayers at an estimated R50 million per year, with no guarantee of returns.
• With Eskom and Transnet already in financial distress, adding a holding company increases costs with no clear economic benefit.