SOE health check is failing dismally

Corporate governance researcher, Lynn Mcgregory, measures the state of South Africa's state owned enterprises.

With one SOE after another being in the spotlight with allegations of corruption and maladministration, how does one get a barometer reading of SOE health?

Firstly one needs to decipher fact from fiction...

The first question I think we need to ask is what are the values and the morality that goes on in many state owned enterprises, and the extent to which our boards and our CEOs understand what the truth is and what the truth is not.

Lynn Mcgregory, Snr Research Fellow at Centre For Corporate Governance, University Of Stellenbosch

Secondly, the money...

The Auditor General's Report about government expenditure, both provincial and national, talked about 'fruitless and wasteful expenditure, 'unauthorised expenditure' and 'irregular expenditure'.

Lynn Mcgregory, Snr Research Fellow at Centre For Corporate Governance, University Of Stellenbosch

Altogether this expenditure came to over R47 billion.

Corporate governance of SOEs is the responsibility of various government departments, boards and in some cases private businesses, she explains.

Sometimes it is not clear who is accountable for certain irregularities, so there is a structural and policy difficulty on top of everything else.

Lynn Mcgregory, Snr Research Fellow at Centre For Corporate Governance, University Of Stellenbosch

She says if any board, chairperson or CEO is involved in dubious practice they should resign.

Some people at the top of these companies have not been telling the truth for years and years.

Lynn Mcgregory, Snr Research Fellow at Centre For Corporate Governance, University Of Stellenbosch

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
'Judgment pits President Zuma against Deputy President Cyril Ramaphosa'

'Judgment pits President Zuma against Deputy President Cyril Ramaphosa'

Political analyst Ralph Mathegka weighs in on Friday's Nxasana judgment.

[WATCH] What movie title would you give the court's NPA ruling asks Bongani?

[WATCH] What movie title would you give the court's NPA ruling asks Bongani?

Bongani Bingwa asked listeners for their take on the matter.

Madonsela's Democracy Festival aims to explore good governance

Madonsela's Democracy Festival aims to explore good governance

The Thuli Madonsela foundation's inaugural Democracy Festival brings youth together to celebrate SA.

"Trump constrains USA by recognizing Jerusalem as Israeli capital"

"Trump constrains USA by recognizing Jerusalem as Israeli capital"

Prof David Hornsby talks on the implications of Trump recognizing Jerusalem as Israeli capital.

'African Spelling Bee celebrates literacy and academic excellence'

'African Spelling Bee celebrates literacy and academic excellence'

Roger Dickson, convener and mediator of the African Spelling Bee talks about the upcoming contest.

[WATCH] Bongani asks what's that one word you struggle to spell?

[WATCH] Bongani asks what's that one word you struggle to spell?

Bongani Bingwa kicked off the open line with conversation on words that we often struggle to spell.

Popular articles
South Africans Doing Great Things |  Nkosinathi Nkomo

South Africans Doing Great Things | Nkosinathi Nkomo

Wasanga speaks to Co-founder of AquaRenu, Nkosinathi Nkomo about turning a problem into an opportunity.

Dr Mbuyiseni Ndlozi opens up about his thesis

Dr Mbuyiseni Ndlozi opens up about his thesis

Ndlozi explains the significance of the the first chapter of his thesis: 'Trauma in the archives'.

German prosecutors probing Steinhoff CEO Markus Jooste (for accounting fraud)

German prosecutors probing Steinhoff CEO Markus Jooste (for accounting fraud)

The Money Show’s Bruce Whitfield interviews Steinhoff International Chairperson Christo Wiese.

Is it normal to have a curved penis? Dr Shingai explains

Is it normal to have a curved penis? Dr Shingai explains

Urologist Dr Shingai Mutambirwa says penile curvature is only a concern if it impedes a man's ability to have penetrative sex.

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

Meet Shoprite’s Christo Wiese, ruler of retail (and 3rd richest African)

Meet Shoprite’s Christo Wiese, ruler of retail (and 3rd richest African)

Bruce Whitfield interviews the remarkable Wiese (net worth R100 billion!) about how it all began and where it’s going.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?