It needs to be noted that the role of the Treasury in overseeing the performance of these SOEs is mostly linked to the incorporation of the entity itself. As such, when monitoring the SOEs that are incorporated under the Companies Act, the Treasury’s supervisory role is governed primarily by the responsibilities of that of a shareholder towards an entity as governed by the Articles of Association. With regard to those entities incorporated or established under an Act of Parliament, the Treasury will enact the provisions of the Finance Act no 38 of 1971. In both instances the applicability of the guidelines issued is dependent upon mainly the complexity of the operations, the market conditions and the competencies required ensuring smooth operations.
Therefore, when taking decisions the Boards of Management or Directors and the Management must ensure that while being governed by the guidelines and the circulars issued by the Treasury and other applicable entities, the decisions must fundamentally be within a proper legal and regulatory framework. The objectives of the entity should be achieved effectively and efficiently having utilized the available resources. It is important that the Boards and the senior management exhibit due diligence given that the resources under their custody are non-other than public property.
is noted that you are vested with a responsibility to ensure that the entities operate as commercially viable having exercised best business practices. This demands the appointment of personnel who are properly qualified and have the capacity to guide your entities to achieve their objectives. In this context the Treasury envisages conducting awareness programmes for the members of Boards and the senior management on the best practices that must be adopted in guiding the operations of these entities.
I expect to see a marked improvement in your performance in the ensuing year to bring our economy to greater heights. Thank you.