The challenges faced by SA’s state-owned entities (SOEs) are not unique; they’re a global phenomenon. The countries that invested time in critically analysing their parastatals and took corrective action in time have succeeded in turning their fortunes around.
The following factors hinder SOEs’ efficiency: conflicting objectives; lack of financial management; failure to comply with reporting standards as required by the relevant legislative and regulatory bodies; board and remuneration and incentive practices are complex and contentious; and insufficient measures are in place for evaluating performance...
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