STOPPING THE ROT: Government at odds with civil society over new SOE law

Despite public pressure for urgency in addressing problems in state-owned entities , there is still a long road ahead for government’s law meant to regulate these entities, if the Department of Public Enterprises’ Annual Performance Plan is anything to go by.

Deputy Minister of Public Enterprises Phumulo Masualle, however, told MPs in Parliament last week it may be time to “up the pace” in respect of the bill so it can be approved in a shorter time-frame. Masualle said the SOE council was expected to meet before the end of this quarter. The submission provides information on the fragmented legal frameworks regulating SOEs and their board appointments and gives context that may assist in the analysis of state capture in these entities.

Professor Riekie Wandrag, a member of the DOI research team, argues that too much power resides with the minister in board appointments. This centralisation of power results in an “untenable situation” where the government is the majority or sole shareholder, the policymaker and the regulator of these entities.

Ledger also concurred with the institute’s research that more attention should be given to how people get fired in SOEs.We found the way in which people get fired is almost more important than the way in which they get appointed, so we need as many checks and balances for dismissals as we have for appointments.”

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