The complex governance issues surrounding the appointment of senior management at State-Owned Enterprises (SOEs) have once again been raised by news reports that Minister of Public Enterprises Pravin Gordhan has rejected the name put forward by the Eskom Board to replace André de Ruyter as CEO.
That’s according to Professor Parmi Natesan, CEO of the Institute of Directors.
Natesan says the minister’s rejection of the Board’s nomination lays bare the tangle of governance issues that continue to affect the balance of governance at SOEs.
While awaiting an official response from the Department of Public Enterprises, Professor Natesan emphasises that such decisions should prioritise merit, competence, and alignment with an SOEs’ strategic objectives.
Prof Natesan elaborates in video below: