Shape up or ship out, Brown warns SOE boards

Public Enterprises Minister Lynne Brown says that she’s relieved that the judicial commission of inquiry into state capture is coming to fruition.

FILE: Lynne Brown. Picture: Thomas Holder/Eyewitness News.

CAPE TOWN - Public Enterprises Minister Lynne Brown says boards at state-owned enterprises will be rotated if they don’t perform.

Brown says that she’s relieved that the judicial commission of inquiry into state capture is coming to fruition.

Addressing Parliament’s committee on public enterprises on Tuesday morning, she says that the only way to get to the bottom of malfeasance at state-owned companies, is to diligently investigate them.

WATCH LIVE: Minister Lynne Brown sends stern warning to SOE boards

The minister says she’s asked President Jacob Zuma to fast-track a proclamation for the Special Investigating Unit (SIU) to probe contract management at Eskom and Transnet.

She says that an SIU investigation will tie up loose ends left behind by a series of investigations commissioned by former Eskom boards.

Brown adds that government will also be tightening the reins on loan conditions to ensure that no debt defaults occur.

"The message to the boards of all SOCs is that they must shape up or ship out. If they are unable to instill confidence in their management and oversight responsibilities, they will be rotated."

She says the boards at all SOCs are on high alert to mitigate negative impacts on their entities’ ratings and consequently, the sovereign rating.

(Edited by Shimoney Regter)