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Call for Ramaphosa’s Intervention in SOE Leadership Crisis

Published

7 months ago

October 13, 2023

Call for Ramaphosa's Intervention in SOE Leadership Crisis

Some political analysts are urging President Cyril Ramaphosa to take action as critical state-owned enterprises grapple with a leadership crisis.

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The concerns arose following the recent resignation of Eskom’s board chairperson, Mpho Makwana. Transnet has also witnessed several key departures, including the resignations of group CEO Portia Derby and CFO Nonkululeko Dlamini as reported by Eyewitness News.

These leadership vacancies, combined with operational challenges at these state-owned entities (SOEs), raise significant concerns about their impact on South Africa’s economy.

Theo Venter, a political analyst at the University of Johannesburg, emphasises that the president cannot afford to remain passive in addressing the governance crisis within these SOEs.

“We are already facing significant challenges, with most of our vital SOEs in critical condition. There is not only room for him to intervene, but it is also imperative for him to provide guidance. However, given what we know about his past actions, we may not see him taking swift action.”

Levy Ndou, a political analyst at the Tshwane University of Technology, highlights the importance of appointing competent leaders to the boards of these SOEs to drive their turnaround strategies.

“What is crucial is that ministers must ensure that the right individuals are appointed to these boards, granting them the autonomy to fulfill their fiduciary duties without undue interference from any external parties.”