TRYPHOSA RAMANO: Where Gordhan must start
The Public Finance Management Act should be the guiding light to lift state enterprises out of decay
In his Thuma Mina (Send Me) clarion call recently, President Cyril Ramaphosa called for a "social compact" to lift state-owned enterprises (SOEs) out of their financial morass. Everyone wants to see SOEs fulfil their mandates of being strategic national assets for infrastructure development and transformation, operating efficiently and embracing financial accountability to help tackle unemployment, underdevelopment and poverty. But why has it taken government so long to fix this, given that it has always been in direct control of SOEs? One explanation is that government has failed to deploy capable people with good credentials to the right positions. Equally, it has failed to ensure people are held accountable through the Public Finance Management Act (PFMA) and other treasury regulations. It is hoped this will change. A month ago, Ramaphosa picked Pravin Gordhan as public enterprises minister. Gordhan will have his job cut out for him to make the PFMA the cement that holds the bric...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.