SACCI statement on Eskom board restructuring
20 September 2022
The South African Chamber of Commerce and Industry (SACCI) has noted media reports of another impending restructuring of the board of Eskom.
Whilst changes to the Eskom board should take place within normal rotation principles in line with established corporate governance policy, we remain concerned as to what credible and established process, the cabinet follows in the selection, recruitment, retention, and performance management of the leadership in state-owned enterprises (SOEs).
The process of the assessment and performance review is not likely to address the root causes of the Eskom crisis and other SOEs, if such review does not include the role of cabinet as the appointing authority. The review ought to include the evaluation of the skills, competencies, experience and performance track record of the selectors and decision makers as well.
This is the only way in which effective, sustainable solutions can be realised. Otherwise, it will be the moving around of chairs and the avoidance of dealing with the root causes.