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In a recent statement amid speculation and concern, Water and Sanitation Minister Senzo Mchunu ardently defended the formation of a new state-owned entity (SOE) in South Africa, the South African National Water Resources Infrastructure Agency. This establishment, conducted under his watch through the National Water Resources Infrastructure Agency Bill, has sparked debate regarding the effectiveness and integrity of SOEs within the country.
During a portfolio committee session on water and sanitation this past Tuesday, Minister Mchunu detailed the bill’s intentions and sought to assuage fears about potential corruption and underperformance, issues that have historically plagued some of South Africa's state entities. Despite receiving feedback that indicated a lack of wide support – with 75% of oral and written submissions leaning against the bill – Mchunu holds a firm ground that the establishment of this new agency does not predicate corruption.
In his address, Mchunu emphasized the bill’s meticulous design, which delineates clear operational functions for the agency, and highlighted positive signs of support from significant entities such as the National Economic Development and Labour Council (NEDLAC) and the National Treasury.
Amid the exchange, apprehension was voiced by the Democratic Alliance’s (DA) Nick Myburgh, who expressed pointed concern about the risk of creating yet another SOE that may succumb to the same maladies as its predecessors, such as corrupt mismanagement. Myburgh equated the establishment with potentially bringing about a new "monster" within the state mechanism.
However, Mchunu responded with a call to focus on the potential of the new agency to rise above past challenges, urging that ideas of merit should prevail over the fear of corruption, and highlighted that the inherent design of the bill and the agency will incorporate checks and balances to prevent malfeasance.
The minister’s commitment to navigating away from the shadows of underperformance and corruptibility comes at a crucial time as faith in public institutions remains fragile. The South African National Water Resources Infrastructure Agency is expected to operate as a major public entity with a strategic role in managing the nation’s water resources infrastructure.
This narrative aims to tackle more than just skepticism; it seeks to rebuild public trust in government-led initiatives, particularly in sectors as vital as water resources. The success of this SOE may set a precedent for future government entities and can potentially reshape the public’s perception of the efficacy of SOEs in South Africa.
Through rigorous legislation and steadfast political will, Minister Mchunu hopes to establish an SOE that operates with transparency, performance efficiency, and, above all, integrity. With its establishment, South Africa stands on the cusp of what could be a significant step in revitalizing its water management systems and also in reinventing the reputation of state-owned enterprises within the nation.