Bloomberg reports that top South African businessmen called upon to help save ailing state-owned enterprises (SOEs) are abandoning their posts, frustrated by indecision and political interference.  

SA Post Office (Sapo) CE Mark Barnes, a former investment banker, on Thursday became the latest boss to quit.  His announcement came after former banking executive Phakamani Hadebe left power utility Eskom and ex-Vodacom executive Vuyani Jarana resigned from Sa Airways (SAA) in June.  “It’s become increasingly obvious to private-sector talent that there is too much micro-management going on and too much political balancing and interference, which blocks decision-making.  Ultimately it means … that talent levels decline,” noted Peter Attard Montalto of Intellidex.  The walk-out of top talent has forced the government to often appoint placeholder executives.   Four critical SOEs – Eskom, Transnet, SAA and the Public Investment Corporation (PIC) – all have acting CEOs.  But, it’s not a wholesale exit because business executives like Rothschild & Co chairman Martin Kingston and former Absa Group CEO Maria Ramos are helping out at SAA and the PIC respectively.  In order to attract more talent from the private sector, the government is going to have to address key issues such as separating the roles between government boards and executives, according to Cas Coovadia of the Banking Association of SA.

Read the full original of the above report by Loni Prinsloo and Roxanne Henderson at Moneyweb

Read too, Mark Barnes becomes that latest SOE casualty, at Business Report

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