Gordhan says SOEs in dire straits, threatens boards and CEOs with intervention

fin24.com

- fin24.com | 3 months ago

South Africa’s state-owned companies are in a parlous state and if the boards and management of these organisations do not do what government expects of them, it won’t hesitate to intervene to ensure proper governance and financial management, says Public Enterprises Minister Pravin Gordhan.

He painted a grim picture of the country’s biggest state-owned entities - Eskom, SAA, Transnet and Denel - when he delivered his response to President Cyril Ramaphosa’s State of the Nation Address on Tuesday. Gordhan told MPs that state capture is the major reason why most remain a blight on the country’s balance sheet.

Subscribe to Fin24's newsletter here He told Parliament government will take charge if the companies do not turn the corner.

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