The Citizen reports that both Eskom and Transnet are now without permanent CEOs while the country is in crises regarding power and logistics. This means that there is no executive management to hold to account.

According to Busi Mavuso, CEO of Business Leadership SA (BLSA), plans to fix Transnet and Eskom depend fundamentally on business and government being able to work with boards and strong management teams in both entities. “Good governance starts with a board being able to hold the executive management to account. To do that, the board needs to have appointed and have the right to dismiss the chief executive officer. Yet, in both Eskom and Transnet, as well as all other SOEs, the CEO is appointed and dismissed by a minister who can, under the organisations’ memoranda of incorporation, ignore the board in the process. This is the beginning of the dysfunction that besets these entities,” Mavuso wrote in her weekly newsletter. She went on to indicate: “Strong permanent leadership at the two entities, appointed by empowered and capable boards, would substantially improve the outlook for both sectors and enable business to contribute more effectively to resolving the crises. I therefore urge the minister to empower the boards that he has appointed to act with urgency and focus.” With reference to the recent executive resignations at Transnet, the Bureau for Economic Research (BER) said they should be welcomed, but “the relief will only last if an open recruitment process is followed to find the most suitable replacements and also if the candidates applying for the positions are giving government assurances a policy of noninterference will be followed.”

• Read the full original of the report in the above regard by Ina Opperman at The Citizen
• Lees ook, Eskom, Transnet ‘leierloos en ontmagtig’, by Maroela Media

Get other news reports at the SA Labour News home page