A frame­work for board ap­point­ments

The Star Early Edition - - BUSINESS REPORT -

THE GOVERMENT’S un­der­tak­ing to fi­nalise a board ap­point­ment frame­work for state-owned en­ti­ties (SOEs) by March next year will un­lock so­cial eco­nomic ben­e­fits and fend off the per­cep­tion that pub­licly-run in­sti­tu­tions are cor­rupt, the In­sti­tute of Di­rec­tors (IoDSA) has said. IoDSA Cen­tre for Cor­po­rate Gov­er­nance ex­ec­u­tive, Parmi Nate­san, said yes­ter­day that the com­po­si­tion of SOE boards had the great­est sin­gle im­pact on the fu­ture suc­cess of pub­licly owned en­ti­ties in South Africa. “The IoDSA is com­mit­ted to im­prov­ing cor­po­rate gov­er­nance across South Africa. This can im­prove or­gan­i­sa­tional per­for­mance over the long term, which has so­cio-eco­nomic ben­e­fits for the coun­try as a whole, but it will also con­trib­ute to re­vers­ing the per­cep­tion of cor­rup­tion that is swamp­ing our pub­lic life,” Nate­san said. She hailed the govern­ment’s un­der­tak­ing to fi­nalise a board-ap­point­ment frame­work for state-owned en­ti­ties, say­ing it was one of the key steps out­lined in the govern­ment’s In­clu­sive Growth Ac­tion Plan, which was re­leased by the Trea­sury last week. The plan is in­tended to kick start eco­nomic growth, end the re­ces­sion and stave off fur­ther down­grades. “SOEs are key en­ablers of eco­nomic growth, par­tic­u­larly in South Africa, and the IoDSA has re­peat­edly ar­gued that their lack of per­for­mance is linked to im­per­fect gov­er­nance,” Nate­san said. – Regis Nya­makanga

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