RELATED “When you do reforms in a private company you need to clean up the executive and get new people, a new board. In SOEs this is difficult because the minister appoints the board that is sometimes not fit for purpose,” Gumede said in an interview.
Qobo noted: “The only way we can insulate SOEs from political interference as well as ensuring that they have a firewall protecting them is by restructuring the SOEs and removing them from government oversight.” Less than a year ago, PetroSA’s board was dissolved amid financial difficulties. The company last reported a profit in 2013,“We assume that politicians, even the well-meaning ones, understand corporate governance and the responsibilities that come with it. They may even do damage as they try to do right. … Certain corporate governance norms don’t allow a certain level of overreach by politicians,” Qobo said.
“If these SOEs were private companies they would have been closed down and gone into bankruptcy, but because they are public and there are politics around them, they are being bailed out,” he added. Qobo said besides political interference being an issue, weak boards are also a cause for concern and lead to governance issues at SOEs.
At Transnet, for example, by centralising procurement decision-making, it was possible for parties inside and outside Transnet to collude in the awarding of contracts and to enable individuals to make certain procurement decisions.
What happens to this Zimbo mgigaba now that it's divorced...deport asap!
Electricity is up 35% in the last two years due to IPP's. WMC must stop meddling in SOE's and will run fine.
The most undoing suffered by SOE's had been the privatisation economic policy shoved down this hastily established government under corruptible boards of the 'corporated' management answerable and pliable to politicians!
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What to do about it. It's about 10 years too late to have this discussion. There is nothing left to steal so they move on to ongoing orders and contracts and future government programmes like national health . They are kleptomaniacs. Politics is there vehicle.
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