Governance in State Owned Enterprises
The Centre for Corporate Governance in Africa is conducting
research on Governance in State Owned Enterprises (SOEs). This
project is funded by the Hanns Seidel Foundation, a German
foundation that believes that South African SOEs play a vital role
in maintaining a healthy infrastructure necessary for the economy
and attraction of investors from countries such as Germany.
All Schedule 1 and 2 SOEs will be assessed using the matrix that
was initially developed jointly by the Public Investment
Corporation (PIC) and the Centre in order to assess environmental,
social and governance (ESG) performance of JSE listed companies. It
has been adapted in order to assess SOEs by Lynn McGregor, Senior
Research Fellow at the Centre and Nozizwe Madlala Routledge,
special advisor and former deputy Government minister.
Not only will the matrix provide an effective and simple tool
for SOEs to help improve their own governance, but the results will
enhance the reputation of those parastatals that are already
performing well and could provide interested investors with useful
information. Hopefully this will complement and add to the
considerable work the government has already done in relation to
SOEs.