Major red flags for new state-owned company in South Africa

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The Department of Public Enterprises is forging ahead with a new state company for South Africa – but has flagged several major risks and challenges it still faces.

The Department of Public Enterprises has outlined its plans for—and the biggest risks and challenges facing—a new state-owned holding company that will house all the major SOEs in the country.forwards the department’s plans to establish a National State Enterprise Holding Company in hopes of turning around the fate of many ailing state-owned enterprises in the country.

“These initiatives aim to strengthen Governance systems, ensure board stability, and promote financial and operational stability across SOEs’,” said the report. In the report, DPE identified various challenges, risks, causes and mitigation plans for the proposed holding company – including red flags for state capture.Much of the annual performance plan outlines that some of the most prevailing threats to the DPE and SOEs are “State Capture, maladministration, and corruption.”

 

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