Lynne Brown threatens to rotate inefficient boards at state-owned companies
Public Enterprises Minister Lynne Brown’s message to the boards of state-owned companies on Tuesday was "shape up or ship out". "If they are unable to instil confidence in their management and oversight responsibilities, they will be rotated," said Brown during a briefing to Parliament’s public enterprises committee. "In the constrained economic environment government is continuing the programme of fiscal prudence and consolidation. The expectation is that all financial instruments including government guarantees with loan conditions will be managed in such a manner that no debt defaults will occur. "The boards at all our state-owned companies are on high alert to mitigate negative impacts on their entities’ ratings, and consequently the sovereign rating," Brown said. The government remained resolute in its efforts to turn Eskom around and had noted that investors and lenders were already reviving their engagements and commitments to the company. Brown said a major priority for the ...
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