ASHA SPECKMAN: How to ruin an SOE
Political appointees are costly mistakes for the government
Having political appointees chair state-owned companies is a recipe for disaster, which is why it could be a calamitous decision for the Public Investment Corporation (PIC) to continue with a tradition that does not yet have a basis in law. The PIC is the only state-owned entity that has a deputy minister chairing its board. The debate over who should chair the PIC was the main topic at the commission of inquiry into governance at the entity this week, when a former board director, Vuyo Jack, presented arguments against the appointment of a political chair. Not wanting to miss the opportunity for reform, he emphasised that if the government insists on appointing a political chair, an independent nonpolitical deputy chair must be installed to balance the competing interests of the political with the fiduciary needs of the organisation. Either way, the government will have to make radical decisions to fully restore the reputation of the PIC — and appointing another minister as chair s...
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