Press Release by Free SA
Immediate Release
27 January 2025
Free SA is urging members of the public to speak out against the proposed National State Enterprises Bill (B1—2024), which has been deemed a dangerous step toward even more unchecked state control over South Africa’s economy. The organisation is encouraging the public to engage in the public participation process around the Bill which, if enacted, could cause ‘State Capture 2.0’.
The Bill, which introduces a State Asset Management SOC Ltd (SAMSOC) to centralise control of key state-owned enterprises (SOEs) like Eskom, Transnet, SAA, and more, effectively placed these various SOEs under a single government-controlled super-company.
According to Free SA Spokesperson, Noluthando Hlophoyi, the Bill should be a grave concern for every South African. “We must make every effort to stop State Capture 2.0 and reject the National State Enterprises Bill with the contempt that it deserves”, she said. “This Bill is nothing more than nationalisation layered on top of nationalisation, to concentrate power in the hands of the state at the expense of ordinary South Africans, who already bear the brunt of endemic corruption”, she added.
Free SA has slammed the Bill because it risks entrenching political interference, eroding transparency, and putting essential services and critical infrastructure under even greater political control. Raising objections during the public participation process is a key step to protecting South Africa’s public assets from even more political control and mismanagement.
Key Concerns with the Bill are:
Centralistion of Power
The Bill creates State Asset Management SOC Ltd (SAMSOC), a super-company with control over vital SOEs.
The President has sole 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.
Weakened 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.
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.
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.
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.
Free SA endorses the need for effective, transparent, and independent management of SOEs. South Africa needs independent governance, not a centralised super-company under the President with little to no real oversight. Yet, the Bill removes SOEs from the oversight of the PFMA, a vital safeguard for public funds. Public ownership of SOEs means the people must have a say in how they are governed, therefore public property must not be secretly transferred, sold, or controlled by a single entity without public scrutiny.
Free SA is urging members of the to engage in the public participation process and oppose State Capture 2.0. By submitting comment on the Bill, it becomes part of the official record and is legally recognised as part of the public participation process.
At the Foundation for Rights of Expression and Equality (Free SA) we are committed to empowering South Africans to have their voices heard.
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Media enquiries:
Anneke Burns
Free SA Publicist
071 423 0079
media@freesa.org.za
About FREE SA:
At the Foundation for Rights of Expression and Equality (Free SA) we are committed to empowering South Africans to have their voices heard. In a true democracy, every opinion counts, and we ensure your voice resonates where it matters most: in Parliament, in public policy, and in the laws that shape our country. From advocating for democracy and equality to holding the government to account, we stand with you to demand transparent, responsive, and fair governance that serves its people.
To learn more, visit: https://www.freesa.org.za/