"SOEs have blind spots because boards report to political heads"

Wits School of Governance lecturer, Dr Ivor Sarakinsky, says divisions within the African National Congress (ANC) are now interfering with governance and deployment.

This follows comments from the ANC and Members of Parliament (MPs) slamming Eskom board and Public Enterprises Minister Lynne Brown over Brian Molefe's reinstatement as the chief executive officer.

Some political analysts believe that Molefe's return to Eskom will benefit the Gupta family.

Yesterday, member of the Parliament Public Enterprises committee, former Finance Minister Pravin Gordhan, said it is clear that the intention is to benefit "the few".

Sarakinsky says whoever takes over the leadership of the ruling party will have to watch closely who is appointed to the board and executive positions of state owned enterprises (SOEs).

The one grouping is clearly using its control of the executive to deploy people not to pursue ANC policy, government policy issues, but to pursue private directed issues in terms of control of resources at SOEs.

Dr Ivor Sarakinsky, Wits School of Governance lecturer, Dr Ivor Sarakinsky

The weaknesses of the whole policy of deployment have come through now.

Dr Ivor Sarakinsky, Wits School of Governance lecturer, Dr Ivor Sarakinsky

Read: Gordhan catching Minister Brown in the lies behind Molefe's return - analyst

Also read: Get the tissues out for Papa Action, this won't end well - Mantshantsha

Sarakinsky explains that the current model of cooperative governance in SOEs has blind spots because boards report to political heads.

The cooperative governance framework needs to be strengthened to empower boards to be independent. Most importantly, a public process like a judicial services commission, where members of the boards are appointed to SOEs, so people can ask the questions, see the decisions and answers in these recruitment processes for people to these boards.

Dr Ivor Sarakinsky, Wits School of Governance lecturer, Dr Ivor Sarakinsky

Listen to the full interview below...


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