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Body to review pay of SOE board

Oct 17 2010 11:47
Johannesburg - A service provider has been appointed to review the salaries of state-owned enterprise board members, Communications Minister Siphiwe Nyanda said on Sunday.

This included the boards of the SABC and Sentech, he said.

The minister had held quarterly meetings with the SABC and Sentech on Friday.

Sentech, the state-owned signal distributor, had an improved cash flow as of September, Nyanda said.

The operating margin increased from 7.2% to 27% and the net profit margin increased from 13% to 32%.

At the end of September Sentech had R230m in cash, he said.

The minister said he would appoint a new CEO of Sentech by early November.

"A new CEO has been recommended to me... it's a very good candidate," he said.

In February, a task team report found that Sentech was "rudderless, inadequately funded and misdirected" and was an unsustainable business.

The task team urged drastic and immediate action if Sentech was to avoid lapsing into terminal decline.

Nyanda had received progress reports from the SABC on performance against government guarantees, corporate governance, the unqualified audited financial statements and vacancies.

The SABC board recommended that a report given to the portfolio committee on communications by the chairperson of the board be withdrawn.

The ministry had noted the recommendation, he said.

The board would be submitting a new report to the committee next week, he said.

"I closed the meeting with the board of the SABC giving a frank talk on my expectations and the way the board should focus on their mandate and avoid turning the SABC (into) a playground for factional interest," Nyanda said.


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