At the heart of South African economic issues lies a major challenge: the management of public enterprises. According to Professor Bismark Tyobeka, rector of the North-West University, the problem lies in political appointments at the expense of expertise, leading to an inevitable downfall of state-owned enterprises.
This crisis of governance, accentuated by partisan appointments to corporate boards, obstructs economic growth and harms the most vulnerable citizens. For Professor Tyobeka, the constitution of boards of directors should be based on criteria of proven experience or recognized competence. The appointment of influential people, without required qualifications, is the main reason for the current financial difficulties of companies such as Eskom, Denel, Transnet, CSIR, SAA and SABC, which are stuck in a cycle of financial bailouts.
The Professor also raises the question of “deployment of executives”, stressing that beyond political allegiances, appointments should be based on merit. Such a system, implemented in many countries, must guarantee the competence and experience of key players to strengthen public trust. With more than 123 public companies according to the official South African government website, these entities play a crucial role in the country’s development and impact a considerable number of citizens.
Transparency and accountability of board members are therefore essential to ensure that South African public companies can fulfill their mission fairly and effectively. It is crucial that these entities serve the public interest and do not become a financial burden on the entire South African population.