The Institute of Directors in South Africa (IoDSA) chief executive, Parmi Natesan said that after reading the findings of the Zondo Commission Reports it is apparent that South Africa’s state-owned enterprises (SOEs) are in an unsatisfactory state.
She said, “Reading the recently-released Zondo Reports, it is clear that the rot comes from the top—the IoDSA urges the President to provide the courageous leadership the circumstances demand and set a new course,".
According to Natesan, board and senior executive appointments for SOE’s should be guided by objective processes based on competence and an ethical commitment to the organisation’s best interests.
“We are surely at or close to Ground Zero when it comes to rescuing our SOEs. The last Sona made no mention of the need to appoint the right people to the boards of SOEs, though previous ones have highlighted this important issue. The president has to act now or it might be too late,” said Natesan.
She added, “There was no getting away from it because the uncertain state of the SOEs is the direct consequence of the breakdown of good governance. There was no easy way out, but fixing governance at SOEs was a crucial first step”.
According to the IoDSA chief executive, in his 2020 Sona Ramaphosa spoke about the need to stabilise the SOEs and yet chose not to address the vital leadership issues.
“He must not shirk his duty this time around, and civil society needs to unite to put pressure on the government to take the necessary steps to restore good governance at the SOEs,” said Natesan.
BUSINESS REPORT ONLINE