Picture: for illustration purposes

State Capture in South African SOEs Lingers, Warns BLSA CEO Busi Mavuso

Published September 21, 2023
8 months ago

Organised business in South Africa has expressed concern over the continuing issue of state capture, with state-owned entities (SOEs) being utilised to misdirect public funds for personal gain. The issue lies in the fact that decision-making authorities within these SOEs have been undermined by politicians, maintaining the dysfunctionality, says Business Leadership SA (BLSA) CEO Busi Mavuso.

Mavuso argues that the decision-making power in these entities does not reside within the boards of the SOEs themselves. Instead, these crucial decisions are likely made between Luthulihouse, the ANC headquarters, and government departments. This argument suggests that the boards of these institutions have been rendered almost powerless in the face of persistent political interventions.

Addressing the situation, Mavuso called for renewed competence and autonomy of the boards operating the SOEs, to best serve the South African public and economy. The CEO’s statement further asserts that for effective operations and the welfare of the nation, political interference in SOEs must be minimised and decision-makers should act in the entities' and public's best interest.

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