Corruption Watch: Improving governance at SOEs key to halting graft
Corruption Watch says that there have already been encouraging signs with the appointments of new boards.
CAPE TOWN - Public Enterprises Minister Pravin Gordhan will be motivating his budget in the National Assembly on Tuesday afternoon.
He’s been charged with turning around major state-owned entities that have been gripped by corruption in recent years.
Corruption Watch says that while there have already been encouraging signs with the appointments of new boards for Gordhan, improving governance at state-owned enterprises is key to stemming the corruption.
Corruption Watch says governance problems at state-owned enterprises have been a major contributor to corruption and open the door for institutions to be captured by moneyed interests.
Executive director David Lewis says in the past the boundaries between the minister as shareholder, the board and the chief executive officer have been violated.
Appointments have been based on loyalty rather than skills and competency.
“These things have to be done correctly if the state-owned enterprises are to be put back on their feet and there are encouraging signs.”
Lewis says the new boards of Eskom and Denel should be given the autonomy and authority to make executive appointments as they see fit.
(Edited by Shimoney Regter)