Candidates who are not “suitably qualified” to lead state firms like power supplier Eskom would no longer be appointed to manage such parastatals “even if they are politically-connected,” South African President Cyril Ramaphosa announced on Monday.
Ramaphosa said this when he briefed the media after the ruling African National Congress National Executive Committee’s meeting held in Pretoria, the administrative capital.
“There should be greater and more effective attention on the operational efficiency, integrity and functionality of our state-owned enterprises (SOEs) as well as ensuring that the people who are fit for purpose are appointed to the various positions,” Ramaphosa said.
He added: “We should avoid political interference in operational matters of our SOEs.”
According to him, the government was not ready to totally dispose of its loss-making core assets, including cash-strapped entities like Eskom and South African Airways.
Ramaphosa said that SOEs still had the potential for economic growth and job creation but they lacked well qualified management to run them.
The president’s remarks are likely to ease tension between the government and labour, as trade unions have long-feared that the ANC wanted to privatise the SOEs and thereby retrench thousands of workers.
Ramaphosa, who failed to attend Monday’s UK-Africa Investment Summit, said he did so because he had better things to do at home.
One of the items on his domestic agenda was to chair the NEC meeting, the presidency said, adding that the other item was to prepare for the country’s chairing of the 2020 African Union summit in February.
NM/jn/APA