Government adopts stringent guidelines for the appointment of SOE boards
Following worldwide practices, terms will be fixed and only ‘people with expertise, experience and integrity serve in these vital positions’
The cabinet has adopted stringent guidelines for the for the appointment of boards and CEOs of state-owned enterprises (SOEs), generally regarded as entry points for state capture. Appointments at state utilities were at the heart of state capture, which allowed for large-scale looting, during former president Jacob Zuma’s term of office. Deputy chief justice Raymond Zondo’s state-capture commission of inquiry, heard from former public enterprises minister Barbara Hogan how Zuma unlawfully interfered in key appointments at state entities. During his first state of the nation address in February, Ramaphosa said the government would change the way boards are appointed so that “only people with expertise, experience and integrity serve in these vital positions”. Last week, the cabinet, led by Ramaphosa, adopted the guidelines. According to the guidelines, seen by Business Day, it was found that board appointments were not done in a transparent manner and there was no central unit or au...
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