Leadership crisis at SOEs will lead to preventable mistakes, warns SACCI
The South African Chamber of Commerce and Industry says the instability at the board and executive level of state-owned entities has a devastating impact on the economy.
SACCI’s remarks follow the announcement of the latest high-profile resignation at Transnet, with Minister of Public Enterprises Pravin Gordhan confirming that former chairperson Popo Molefe had left the struggling entity.
Transnet CEO Portia Derby, CFO Nonkululeko Dlamini and Transnet Freight Rail CEO Siza Mzimela also recently left the struggling entity.
Eskom also remains without a CEO, while Mpho Makwana has resigned as chair.
"As the South African Chamber of Commerce and Industry, we have, over the years, urged the government to bring a level of professionalism and an acceptable scientific process in handling selection, recruitment, performance management, people development and an empowering and motivating employee relations environment in the SOEs and relevant public sector institutions,” said SACCI CEO Alan Mukoki.
"There is a lack of evidence that the government relies on a credible scientific template in making leadership appointments in a consistent manner. Meritocracy does not appear to be part of a deliberate design, and where people with merit have been appointed, this appears to have been accidental.
"We have also voiced our concerns about whether the cabinet, as a collective, should be the appointing authority, given its own limited corporate leadership experience, whether high-level executive or non-executive board.
"Preventable mistakes are bound to happen due to this gap in experience," added Mukmoki.
ALSO READ:
