Intervention in SOEs should be systemic and made public - expert

There have been questions on whether Public Enterprises Minister Pravin Gordhan is coming on too strong on state-owned enterprises.

News24 quoted the minister as saying during Tuesday’s State of the Nation Address debate that the situation in SOEs is uncertain and the government won’t hesitate to intervene if the boards and management of these organisations don’t do what’s expected of them.

Responding to this, Pan-African Investments and Research Services CEO Dr Iraj Abedian suggests a systemic framework needs to be implemented where political oversight and organisational oversight is exercised.

I think the level of intervention should be systemic. That means the political oversight and boundaries between political overisght, the role of the board, the composition of the board and contract of the board should be made clear and ideally should be made public.

Iraj Abedian, CEO - Pan-African Investments and Research Services

So you and I as citizens know what are the deliverables that the minister has signed with the board of let's say SAA or Eskom and that, of course, presupposes that the minister does have absolute confidence that the board can deliver.

Iraj Abedian, CEO - Pan-African Investments and Research Services

On the back of that, then the board enters into a similar organisational arrangement with the chief executive in order to deliver those on the best possible professional advice.

Iraj Abedian, CEO - Pan-African Investments and Research Services

A culture has been developed over the past 20 years that these boundaries of political oversight, corporate governance and executive control are completely blurred and it is done on ad hoc basis.

Iraj Abedian, CEO - Pan-African Investments and Research Services

We need to sit back and not perpetuate this adhoc interventionist approach and instead put in place a developmental systemic framework....

Iraj Abedian, CEO - Pan-African Investments and Research Services

If you appoint the right board who understands which page you are on as a political representative then you should have absolutely no need, as a minister, to interfere.

Iraj Abedian, CEO - Pan-African Investments and Research Services

Click on the link below to hear the full conversation...


Recommended

by NEWSROOM AI
Read More
Brewmaster Apiwe Nxusani-Mawela takes us through her beer-making journey

Brewmaster Apiwe Nxusani-Mawela takes us through her beer-making journey

She explains how she got into the world of beer after studying industrial microbiology and how she is transforming the industry.

[LISTEN] Film and television industry to enjoy basic labour rights

[LISTEN] Film and television industry to enjoy basic labour rights

Government has gazetted its intention to review the labour rights and conditions of employment of those working in the industry.

Defiant Gauteng DA councillors face expulsion, says Mike Moriarty

Defiant Gauteng DA councillors face expulsion, says Mike Moriarty

Vinay Choonie and Basil Douglas are facing expulsion and removal from their positions after defying the DA.

EFF media outlets ban is against freedom of expression  - Sanef

EFF media outlets ban is against freedom of expression - Sanef

It is reported that the party has denied access to journalists from Daily Maverick, Scorpio, amaBhungane, Rapport and Caxton.

Best to travel during the day along the N3, says Toll Concession

Best to travel during the day along the N3, says Toll Concession

N3TC commercial manager Con Roux details some tips and statistics if you are travelling to KZN this December.

Tips to make your home less vulnerable to crime this holiday season

Tips to make your home less vulnerable to crime this holiday season

MultiNet Home Loans CEO Shaun Rademeyer says criminals are getting smarter and do their research beforehand.

Popular articles
 Eskom buys fine coal that looks like baby powder when wet, says expert Ted Blom

Eskom buys fine coal that looks like baby powder when wet, says expert Ted Blom

Energy analyst Ted Blom weighs in on the energy crisis in South Africa as load shedding stage 2 is implemented.

Want to get rich? Got R100? You don’t need millions to start

Want to get rich? Got R100? You don’t need millions to start

Bruce Whitfield interviews Anthea Gardner, author of "Make Your Money Work for You: Think Big, Start Small".

What is a 'Modern African Gentlemen'? Mini SA asks a 'pretentious' question

What is a 'Modern African Gentlemen'? Mini SA asks a 'pretentious' question

Branding and advertising expert Andy Rice hates Mini South Africa’s new "Clubman Modern African Gentlemen Edition".

Now is the beginning of a new era - Jeff Radebe

Now is the beginning of a new era - Jeff Radebe

The longest serving minister in post-apartheid South Africa shares what he has described as an 'incredible' 25 years.

MultiChoice dumps all Steve Hofmeyr content from its platforms

MultiChoice dumps all Steve Hofmeyr content from its platforms

The pay-TV company has taken a decision not to air any past or future content containing the Afrikannas singer.

Is Kipi a ponzi scheme or not?

Is Kipi a ponzi scheme or not?

John Robbie spoke to Richard - a staunch supporter of Kipi (a financial social platform) about the credibility of this scheme.