Over the weekend, Vuyani Jarana became the second CEO of a parastatal to resign in just two weeks. His resignation as head of South African Airways (SAA) followed that of Eskom CEO, Phakamani Hadebe.
Jarana has cited uncertainty around funding and slow decision making processes that are delaying the airline’s turnaround strategy as key reasons for his departure.
Director at SE Advisory Dr Bheki Mfeka says there has been a high turnover of CEOs in state owned enterprises and also generally in the public sector, “and that’s a concern”.
“Resignations on their own happen quite often in organisations but in this context you have to be really concerned at the turnover. If we look at the average turnover of CEOs in public entities you hardly get to three years which is a big concern,” says Mfeka.
Mfeka was also Project Manager to the Presidential State Owned Entities Review Committee and Economic advisor to the Presidency.
Click link below for a full interview
