Few will be sorry to see the back of the minister and department of public enterprises, and President Cyril Ramaphosa is to be commended for taking the bold step of abolishing it. At least it is one portfolio he cut from his bloated cabinet.
Yet the abruptness of the move, apparently with little or no preparation, inevitably raises concerns. So too does the structure that is meant to replace it, the new state-owned shareholding company provided for in a National State Enterprises Bill that has yet to be enacted.
The enterprises in question are not small or simple companies. The task of overseeing and restructuring them, Eskom and Transnet in particular, is big and difficult. The presidency will take over responsibilities of the department of public enterprises for now, it was announced on Wednesday, putting monitoring & evaluation minister Maropene Ramokgopa in charge of implementing the new shareholder model.
The model remains controversial: it risks centralising corruption and rent-seeking, not to mention creating a new set of conflicts with sector ministries such as electricity and transport.
Even if it is a good idea, establishing such a shareholding company requires major legal, financial and technical work. It will be long, complex and risky at a time when those enterprises still have big operational and financial challenges and are undergoing sweeping changes.
Uncertainty over who is in charge and whether the already overloaded presidency has the capacity to take on responsibility cannot be good. The president needs to chart a way ahead sooner rather than later.
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