A framework for board appointments

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