Chairperson, Minister Gigaba and hon members, the Department of Public Enterprises has one primary role. It is there to support and promote economic efficiency within the state-owned companies. This is a mammoth task and the role of oversight that is played by the portfolio committee can and must never be underestimated.
I think it is fair to say that state-owned companies are required to develop comprehensive strategies and operational plans, to ensure a growth of customers and suppliers, which in turn boosts the country's economic growth and creates an environment conducive to job creation. The Department of Public Enterprises is not a service-oriented department. This department's performance involves overseeing state-owned companies' commercial objectives. I applaud the department for being one of only three that have received clean audit opinions.
To increase transparency and add to the success of the portfolio committee's oversight role, I would, however, like to suggest that we, in future, be allowed to access the Minister's service delivery agreement with the President and that the shareholders' contracts signed with various state-owned companies be made available to us. Of great concern is the fact that at present, shareholder contracts do not include either their target job creation or skills development targets. This means that, if a state-owned company does not meet job and skills development targets, it has no bearing on that company's performance for the year. This creates a massive problem for Parliament, as it overlooks immediate government objectives that are necessary for skills development and job creation.
The Minister of Finance, Mr Pravin Gordhan, stated the following, and I quote, "Government will strengthen financial management in the public sector, pursue value for money with the greatest possible vigour and ensure that taxpayers' money is well used."
The Minister further said: "The government needs to activate both public and private sector energies, specifically referring to infrastructure progress and support for industrial development and special economic zones." With this in mind, it is most disturbing that the Department of Public Enterprise's budget allocation has steadily declined over the years. For the 2012-13 financial year, the department has been allocated approximately R1,249 billion, which reflects an increase of R353,3 million from the previous financial year. Do not let this fool you. Of the R1,249 billion, R1,05 billion is earmarked for transfers.
Chairperson, if one looks at the performance of some of the state-owned enterprises, in a word, it is worrying. Denel continues to pose losses due to, mainly, Denel SAAB Aerostructures. This division makes heavy losses and has a negative impact on Denel overall. Broadband Infraco received a qualified audit opinion as a result of auditors being unable to obtain sufficient appropriate evidence to support Infraco's claims of fruitless and wasteful expenditure of R1,89 million and an irregular expenditure of R151,1 million. SA Express not only received a qualified audit opinion, but also had financial statements for 2010-12 being withdrawn from Parliament for being incorrectly drafted. Chairperson, this is unacceptable.
Government is expected to approve a R6 billion bailout for South African Airways, SAA, whilst the airline has denied that this is a bailout. A substantial government contribution to a state-owned enterprise aimed at ensuring its sustainability can hardly be seen as anything else. It is ironic that a R6 billion bailout is being considered, the very day after the DA marched - a march which I was a part of - for the implementation of the R5 billion wage subsidy scheme. [Interjections.] This is the difference between the DA and the ANC government. We are fighting for practical solutions that can create hundreds of thousands of jobs, whereas the ANC government allocates billions to a bottomless pit of inefficiency, like the