VIJAY NAIDOO: Good Business Basics – And then we get to ‘Chapter 9’
It is difficult to escape the conclusion that many of these entities are mere creations of the government to reward political supporters and party hacks, and to keep the gravy train steaming along for as long as possible.
Most discussions on the parlous condition of State Owned Companies (SOE) tend to focus on those providing services, managing infrastructure or manufacturing, such as Eskom, South African Airways and Denel.
Generally overlooked are the plethora of so called Chapter 9 institutions such as the Commissions for Gender Equality and Human Rights, and the huge number of regulatory authorities and boards that are meant to control almost every aspect of our lives.
The better known ones, such as the provincial Liquor and Gambling Boards, do strive to provide some measure of ‘public service’ by protecting the public from themselves in a way, but many are so obscure that one struggles to find justification for them.
The Maritime and Rail Safety Regulatory Authority, for example are meant to play critical roles in their sectors, but they only surface after some sort of tragedy, or if some mismanagement is brought to light.
Almost without exception, they have been mired in controversy through mismanagement, maladministration and sheer looting.
This is despite the fact that management boards are richly rewarded and, in many cases, are able to dictate their own remuneration packages with complete immunity.
The Property Practitioners Regulatory (PPRA), formerly the Estate Agents Affairs Board (EAAB), has just suspended its CEO after a forensic investigation confirmed large scale maladministration, nepotism and fraud.
Typically, this is the norm as these entities go through CEOs like hot knives through butter, as malfeasance is uncovered.
It is interesting to note that this paragon of corporate governance and ethical management has been shortlisted for a position on the SABC Board (after her suspension nogal!)
There can be no doubt that some of these entities, such as the Pan-South Africa Language Board (PanSALB), played a role in forging a more inclusive and diverse post-apartheid South Africa, but nearly 30 years after the dawn of democracy, do we need an entity to promote the 11 official languages in the country?
With the scourge of gender based violence engulfing this country, it is clear that Commission for Gender Equality has completely failed in its key mission, more than 25 years after its creation, yet the management boards and executives continue to draw handsome salaries and perks.
If ever there was a poster child for dissolving an entity, this is it.
It is difficult to escape the conclusion that many of these entities are mere creations of the government to reward political supporters and party hacks, and to keep the gravy train steaming along for as long as possible.
Vijay Naidoo is the CEO of the Port Shepstone Business Forum. He writes in his personal capacity. The views expressed are the author’s own and do not necessarily reflect those of this publication.
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