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