State companies are slaughter houses
Second, the appointments of boards of directors and chief executive officers is often not in line with the challenges faced by the companies. This leads to skills mismatch. Black executives, who would otherwise be very competent in certain areas in line with their qualifications, are appointed to sink. Thus, the unfortunate perception that they are inherently incapable is reinforced.
Third, boards of directors and senior executives are appointed in the same way a newly elected president appoints his cabinet. They are not allowed to implement independent strategies to fulfil the broad mandate of the shareholder in the long term. So the appointments are short term and subject to frequent changes, as is the president’s entitlement to reshuffle his cabinet a countless times.
Since you don’t need to have qualifications to be a minister, the assumption is that the board of directors posts and other positions that require qualifications are filled by people who are politically aligned but woefully lacking in skills.
What applies in the political sphere is exported to the business environment where it does not belong.
Fourth, there is the ubiquitous problem of corruption. The huge procurement budgets of the stateowned companies means the battle for the tender slice becomes intense and some black executives are tempted to enter into clientpatron relationships.
A combination of these factors and more means that black talent is scandalised.
Those who are competent and who make themselves available to run the state companies have their integrity tarnished.
Those who are not qualified but take up the political appointments are part of the scheme that entrenches the perception that the best that blacks can offer is mediocrity. Those blacks who believe they are best suited but don’t qualify politically stand at the outside and watch with disillusionment as the notion of black failure reproduces itself.
It’s time the government reflected deeply on the way it manages state companies. If it fails to stop the carnage inflicted on black executives it would have no moral high ground to tackle racism in the private sector.
Steve Biko’s black man and woman will once again be on their own – this time under a democratic dispensation.