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SACCI Press Statement on executive and board leadership at State Owned Enterprises (SOEs)

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SACCI Press Statement on executive and board leadership at State Owned Enterprises (SOEs)

SACCI Press Statement on executive and board leadership at State Owned Enterprises (SOEs)

17th October 2023

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The South African Chamber of Commerce and Industry (SACCI) has noted, with concern the turbulence at SOEs as it relates to leadership and executive changes. This reflects instability that requires urgent attention. 

As the South African Chamber of Commerce and Industry (SACCI), we have, over the years, urged the government to bring a level of professionalism and an acceptable scientific process in handling selection, recruitment, performance management, people development and an empowering and motivating employee relations environment in the SOEs and relevant public sector institutions.

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There is lack of evidence that the government relies on a credible scientific template in making leadership appointments in a consistent manner. Meritocracy does not appear to be part of a deliberate design and where people with merit have been appointed, this appears to have been accidental.

We have also voiced our concerns whether cabinet, as a collective, should be the appointing authority, given its own limited corporate leadership experience, whether high level executive or non-executive board.

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Preventable mistakes are bound to happen due to this gap in experience. 

The instability at SOEs has had a devastating effect on the economy in general due to the challenges in the government-run energy and logistics platforms. 

We urge the government to seriously consider adopting a system of meritocracy that will move South Africa forward, rapidly.

 

Issued by SACCI

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