Tag: board appointment

The news that John Lamola will assume the roles of both Executive Chair and CEO of South African Airways (SAA) suggests that the state has not learned the lessons of the past few years regarding the importance of good governance.

As long as government’s cadre deployment policy is defended, governance of South Africa’s state-owned entities (SOEs) will remain vulnerable and at risk. This is a reaction to the testimony of President Cyril Ramaphosa before the Zondo Commission of Inquiry into State Capture, who acknowledged that 'massive system failures' with board appointments paved the way for SOE failures. At the same time, the President defended cadre deployment.

Testimony at the Zondo Commission relating to the prepayment of R1.68 billion to Tegeta, a company owned by the Gupta family, provoked strong words from Deputy Chief Justice Raymond Zondo. The whole incident illustrates how seriously directors should approach their duties. Justice Zondo suggested that the directors were negligent at best.

2021 marks a year which should be characterised by transformative change and reinvention. 2020 was a uniquely challenging year, which tested companies and their boards, demanding rapid responses to new challenges, and decision-making with a far wider ambit of influence.

For any company to succeed, its board is crucial. Recruiting suitable, diverse candidates can be difficult. Whether the need is driven by investors, required by law or simply a matter of good business practise, a strategic approach to board diversity is increasingly important.

We have released a research report investigating the processes for recruiting, selecting and appointing non-executive directors in South Africa. The report is structured to offer practical assistance to prospective non-executives who want to understand what organisations are looking for, and what the processes leading up an appointment are. It also offers guidance for nominations committees.

One of the elephants in the room at this year’s State of the Nation Address (SONA) was the conspicuous absence of any mention of the need to appoint the right people to the boards of state-owned enterprises (SOEs).

Chief Justice Mogoeng Mogoeng, during his address at The Directors Event in Sandton, highlighted the issue of board and other leadership appointments in the public sector.