SOE health check is failing dismally

Corporate governance researcher, Lynn Mcgregory, measures the state of South Africa's state owned enterprises.

With one SOE after another being in the spotlight with allegations of corruption and maladministration, how does one get a barometer reading of SOE health?

Firstly one needs to decipher fact from fiction...

The first question I think we need to ask is what are the values and the morality that goes on in many state owned enterprises, and the extent to which our boards and our CEOs understand what the truth is and what the truth is not.

Lynn Mcgregory, Snr Research Fellow at Centre For Corporate Governance, University Of Stellenbosch

Secondly, the money...

The Auditor General's Report about government expenditure, both provincial and national, talked about 'fruitless and wasteful expenditure, 'unauthorised expenditure' and 'irregular expenditure'.

Lynn Mcgregory, Snr Research Fellow at Centre For Corporate Governance, University Of Stellenbosch

Altogether this expenditure came to over R47 billion.

Corporate governance of SOEs is the responsibility of various government departments, boards and in some cases private businesses, she explains.

Sometimes it is not clear who is accountable for certain irregularities, so there is a structural and policy difficulty on top of everything else.

Lynn Mcgregory, Snr Research Fellow at Centre For Corporate Governance, University Of Stellenbosch

She says if any board, chairperson or CEO is involved in dubious practice they should resign.

Some people at the top of these companies have not been telling the truth for years and years.

Lynn Mcgregory, Snr Research Fellow at Centre For Corporate Governance, University Of Stellenbosch

This article first appeared on 702 : SOE health check is failing dismally


Recommended

by NEWSROOM AI
Read More
Hiding inside the 'dark web' - the horrors of child pornography

Hiding inside the 'dark web' - the horrors of child pornography

Expert says says child pornography has the effect of re-abusing the victim because it always exists online.

Thousands expected to march in support of Zuma

Thousands expected to march in support of Zuma

Supporters of the former president are expected to march to the Durban High Court on Friday.

NPA to pursue Zuma prosecution

NPA to pursue Zuma prosecution

NPA boss Shaun Abrahams announced on Friday that the state will reinstate fraud and corruption charges against Jacob Zuma.

[WATCH Bongani Bingwa] Politicians personify low standards and are nonsensical

[WATCH Bongani Bingwa] Politicians personify low standards and are nonsensical

Breakfast show host Bongani Bingwa interrogates the issue of corruption by state officials and questions their competence.

[LISTEN] Neighbours from hell:  Callers share their stories

[LISTEN] Neighbours from hell: Callers share their stories

Tebogo says his neighbor is always borrowing a cup of sugar and other non-perishables.

'Encourage people to take precautions against listeriosis but they need water!'

'Encourage people to take precautions against listeriosis but they need water!'

702's Bongani Bingwa comments on the Cape Town water crisis, saying residents may be exposed to disease if it is not resolved.

Popular articles
Charity loses R39k event deposit after previous Ritz Hotel management goes awol

Charity loses R39k event deposit after previous Ritz Hotel management goes awol

The Ritz Hotel is under new management and the money paid to previous management has still not been refunded.

DStv Premium on a downward spiral, warns tech guru

DStv Premium on a downward spiral, warns tech guru

DStv has lost about 140 000 Premium subscribers to Netflix over the past two years, tech expert Arthur Goldstuck.

Don't blame racism on illness says Eusebius

Don't blame racism on illness says Eusebius

Eusebius McKaiser says it is not unethical for the media to accurately quote the word k***ir if it was used by someone.

Key things to consider ahead of your retirement

Key things to consider ahead of your retirement

If you’re a baby boomer on the brink of retirement, here are a few things to consider ahead of time.

Here's how to check your load shedding schedule in Cape Town

Here's how to check your load shedding schedule in Cape Town

Residents are urged to take note of the schedules as Stage 1 load s​hedding remains a possibility.