Fin24

SA's best run parastatals named

2012-10-11 11:33

Cape Town - Arms manufacturer Denel is the best governed state-owned enterprise (SOE), the Centre for Corporate Governance said on Thursday.

This was followed by Transnet, Telkom [JSE:TKG], the SA Post Office, and the Development Bank of SA, project leader and senior research fellow Lynn McGregor told reporters in Cape Town.

The findings were listed in a report entitled "Rating Governance in State-Owned Enterprises", which used publically available information to assess how the entities were run.

The focus of the research had largely been on transparency, accountability, how the boards functioned, their relationship with shareholders, and social and environmental performance.

McGregor said the findings would come as a surprise to some.

"We are aware that if you look at the news, all the top five are actually in trouble."

The project leader was asked who the five worst performing SOEs were.

A laughing McGregor said the focus of the project was not to "name and shame".

"It is very helpful to know what we are doing right. Our focus is: How can performance of SOEs be improved?"

The centre conceded, however, that much still needed to be improved in comparison to the private sector.

"Apart from social aspects where SOEs do better than the private sector, on the whole SOEs underperform in relation."

The report noted that research did not cover negative media coverage and did not verify the accuracy of information disclosed in public documents.

The centre warned that a high score according to the SOE matrix was not an endorsement of all government practices of an entity.


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Comments
  • felix.feline.3 - 2012-10-11 11:44

    Hmmmmmm, which company is it again that was involved with both the arms deal and e-tolling?

      tumisang.kolobe - 2012-10-11 11:53

      Sanral....

  • rob.gunning.1 - 2012-10-11 11:47

    Our best run parastatl is the one involved with death and destruction... How apt.

      nosiphom.mazibuko - 2012-10-11 15:15

      Involved in security, rather.

  • henk.vanrensburg.31 - 2012-10-11 11:50

    Judging my the Telkom share price....Eish!

      henk.vanrensburg.31 - 2012-10-11 11:54

      R117 in 2005 and now - R17 to R18....That was brilliantly done! Congratulations to the second best parastatal!

  • tumisang.kolobe - 2012-10-11 11:53

    Denel is actually the company that send out two very tired security personnel, they fell asleep at the garage station and the hand granites were stolen.

      andynct - 2012-10-11 13:20

      They were M9143 illuminating flares that are thrown by hand. Still embarrassing though.

  • johan.fou - 2012-10-11 11:54

    Eskom, Post Office and Development bank in the top 5? Wow, if that's the top 5, the bar must be VERY low. Denel didn't really have competition then did they? LOL (PS: Don't take this as a compliment Denel. Being the best governed state-owned enterprise in this government really isn't a big feat.)

      andynct - 2012-10-11 12:18

      Where do you see Eskom? They weren't mentioned, so they must be in the unmentionable part of the list.

      johan.fou - 2012-10-11 12:32

      @andynct: Sorry. LMAO. Meant to say Telkom. LOL Was talking to my colleague about Eskom when I posted that. Thanks for the rectification.

      DuToitCoetzee - 2012-10-11 12:35

      Johan I do not know their financial figures, but I must say I am experiencing excellent services from the Post Office now for years.

  • Eterni80 - 2012-10-11 12:03

    Wow, this is such a long list !

  • tobydt - 2012-10-11 12:03

    Telkom isnt a parastatal. Its a public company.

      vaughan.lund - 2012-10-12 08:20

      The government still has a 40% stake and the Public Investment Corporation another 10.5% which makes the government the majority shareholder with the ability to elect the board. Therefore parastatal.

  • tobydt - 2012-10-11 12:04

    Denel is the best run parastatal. It only required a R700 million bailout.

  • andynct - 2012-10-11 12:08

    I don't see ESKOM? Why would that bee?

      henk.vanrensburg.31 - 2012-10-11 12:10

      Because we are paying Eskom to pay big business not to consume power!

  • DuToitCoetzee - 2012-10-11 12:31

    I would have also choose them. They have the biggest guns. LOL!

  • brandon.wilson.5891 - 2012-10-11 12:49

    I don't see SAA or ACSA!

  • ewan.doyle.7 - 2012-10-11 17:02

    What about SARS?

  • hendrik.schutte.3152 - 2012-10-11 18:19

    If that is the "best run", then we can only guess just how BAD the rest must be......................

  • corne.dunn - 2012-10-12 08:58

    "SA's best run parastatals" - That's a bit of an oxymoron, isn't it?

  • TaniaSandraSteyn - 2012-12-05 02:08

    "if you pat yourself on the shoulder, you are missing the road ahead."

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