Today's Big Stories

The root cause of 'shocking state of affairs' at parastatals

According to reports, SAA now has a new Acting CEO Thuli Mpshe, who was previously the Human Resources General Manager at the airline.

Given that there is also an Acting CEO at Eskom and no CEO at Prasa, there is very clearly a leadership crisis at state-owned companies. Stephen Grootes spoke to Wits University Vice-Chancellor and Political Commentator, Professor Adam Habib, about the root cause of all the problems at our parastatals.

Habib says that what is happening at South African parastatals is a 'shocking state of affairs and a travesty of justice'. He adds that governance is at the core of the problem because of patronage that sees government interfering in appointments at board and executive management levels of these state-owned companies.

He says that the President has been involved in a lot of the appointments that have failed and has never been held accountable for this.

There are three very simple things to be done [to do away with this problem]. Make the right appointments at board level, make the right appointment at executive management level and close the loop for political interference. I promise you, 80% of the problems of these state-owned enterprises will be fixed.

Professor Adam Habib, Wits University Vice-Chancellor and Political Commentator

Listen to the full conversation below:

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