POLITICS
THERE HAS TO BE A WALL BETWEEN PARTY POLITICS AND GOVERNMENT WILLIAM GUMEDE
Associate Professor, School of Governance, University of the Witwatersrand and a Sunday Times columnist
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ppointing current or former politicians, party activists and the politically connected onto the boards and as executives of state-owned entities (SOEs), is one of the reasons why many South African SOEs have chronically failed to deliver on their mandates and have been beset by incompetence and corruption. Appointing current and past politicians to SOEs has led to the politicisation of the management of these state companies, turning these companies to prioritise political, selfenrichment, and corrupt objectives, rather than on delivering quality services and becoming profitable. They undermine good corporate governance, accountability, and oversight in SOEs. They sap the morale of ordinary employees, introduce toxic organisational cultures into SOEs and drive away talent. Many politicians and party activists are appointed to boards or management of SOEs by governing parties often solely based on patronage - to reward them for party loyalty, and support of the party leader or faction. In the overwhelming cases, South African politicians and party activists appointed to boards have limited specialised skills,
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beyond having been in politics or their connectedness to current governing party leaders. However, their skills gained from party politics are often not only unsuitable to the state or SOEs, but they are also toxic to these institutions. Many party activists appointed to boards often have too much time on their hands and try to get involved in the management of organisations – and the allocation of tenders and the appointments of senior management, which undermines corporate Advancing Auditing &Accountability
governance. This undermines the corporate governance firewall between the board and management to ensure the optimal function of organisations. Similarly, politicians and party activists on boards often see themselves as more senior than management – and in some cases demand to receive the same benefits and remuneration or more than management for their services. Politicians appointed to SOEs often politicised the boardrooms, making critical decisions based on party,
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