PARLIAMENTARY MEDIA BRIEFING BY JEFF RADEBE, MINISTER OF PUBLIC ENTERPRISES, 9 FEBRUARY 2000

This is a watershed year for the restructuring of state-owned assets. Considerable progress has already been made. The critical milestones that we have set will make a significant impact on achieving the objectives of our macro-economic framework. The President made reference in his speech last week to speeding up restructuring and further modernising the economy.

I am confident that the restructuring process will greatly contribute to the reduction of our national debt and will release valuable resources that can be redirected to delivering critical services to our people. In addition, many opportunities will open up that will attract valuable foreign direct investment into South Africa as well as introduce leading edge technological expertise.

Our last IMCC decision to prioritise the big four, Telkom, Eskom, Transnet and Denel is proceeding apace. The major focus this year will indeed be on Transnet. You are aware that we have just recently appointed the new Chief Executive for Spoornet, Zandile Jakavula who will be assisted by Rothchilds in effecting the turn-around strategy for this division.. We are also on the verge of announcing International turn-around expertise to assist in returning Spoornet to profitability.

On the question of debt-restructuring, we will be making a ground-breaking announcement with the Department of Finance in a matter of a few weeks. We are confidnet that this will provide a lasting solution to this problem. This debt burden has been identified as an albatross around the neck of restructuring Transnet.

We are also moving ahead swiftly on the corporatisation of the various entities. The Eskom Bill will be introduced in this session of Parliament to give effect to the corporatisation of Eskom.
The Departments of Communication and Public Enterprises are making significant headway and we believe that we are on schedule for the IPO listing of Telkom in 2001. This will once again immensely contribute to widening the ownership patterns in our economy.

With regard to Denel we are on the verge of announcing Strategic Equity Partners for various divisions and are rapidly progressing with the disposal of non-core assets. We have already disposed of Denel/Ariel's 50% shareholding in Debis IT Services SA (Pty Ltd) (dittsa) for R33 million. We are also in the process of disposing of Denel's housing bond/loan book in Bonaero Park Pty Ltd. and Pumpall the plastic pump manufacturer.

I would like to assure employees and our partners in labour that government will do everything in its power to ensure that restructuring in all state enterprises saves as many jobs as possible. In the eventuality that jobs are lost, we will constructively engage with labour in creating an effective social plan that cushions the blow for those affected. We have been involved in the process aimed at finalising the social plan co-ordinated by the Department of Labour. Our Public Enterprises and management in these entities are themselves committed to this approach.

We will be making an announcement on the R4,3 billion acquisition of new aircraft for SAA after the SAA board meeting on Friday. This is part of our turn-around strategy to standardise, cut costs and build expertise in our national carrier.

Finally, I am pleased to announce that we have just completed the recruitment of the first trunch of our new management echelon at DPE. We will shortly unveil the new Corporate Image of Public Enterprises and our vision for improved management of State-Owned Enterprises(SOEs).


For further info contact: Zaid Nordien-082 453 6224

Issued by Ministry of Public Enterprise, 9 February 2000