Business Day

Acres of room at the top

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AN UNCOMFORTA­BLE feature of SA’s recent history is the severe underperfo­rmance of critical state institutio­ns. Though corruption is often seen as the most problemati­c, another matter, that of leadership and strategic bungling, is often forgotten.

Some state-owned enterprise­s are at the cusp of what the African National Congress hopes to achieve in the future. Yet the manner in which the government has repeatedly allowed them to go on for months, and sometimes years, without clear leadership is astonishin­g.

The South African Revenue Service (SARS) has been without a commission­er since Oupa Magashula was forced to resign just more than a year ago. Quite why it has taken this long to appoint a permanent commission­er has never been credibly explained. That SARS has no serious problems is no excuse.

Then there is the perplexing case of the Land Bank. Phakamani Hadebe announced his departure months before actually doing so. To date a CEO is yet to be appointed. Again there is no explanatio­n on why it has taken this long.

The Public Investment Corporatio­n is in a similar fix. Former CEO Elias Masilela has been gone for months, and a replacemen­t is nowhere in sight.

Eskom is provides no better news. Last year we knew that Brian Dames was not planning to stay beyond April. To date all we have is speculatio­n on a possible CEO, but no appointmen­t yet.

Government spin may point to the difficulty of finding suitable senior executives to take over these critical posts but this doesn’t hold water. All companies face challenges of executive succession and it is uncommon for private companies to go without heads for so long.

The delays point to a lack of proper succession planning, one of the key tasks of the boards appointed to oversee them. Either they don’t know what they are doing or they are being prevented from doing their work effectivel­y.

Whatever the cause may be, the consequenc­e of this vacillatio­n is paralysis and uncertaint­y. We cannot place huge expectatio­ns on state-owned enterprise­s and then leave the most critical of them without leadership for so long.

The government’s ambition to reform itself and improve its performanc­e will remain a pipe dream if this is allowed to continue.

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