Reviving accountability principles in state owned companies: a critical study of the governance frameworks governing state owned companies in South Africa.

Abstract

State owned companies are an important ingredient to economic development, in particular to South Africa as a developing country. They are created to serve a public interest objective and each entity derives its specific mandate from the state’s strategic objective. It is therefore important for these entities to be properly governed and operate within the realm of best governance and legislative frameworks. Notwithstanding this reality, State owned companies are generally embroiled in corruption and maladministration, which, in most cases, ultimately affect their ability to deliver on their mandate. If these trends continue unabated, they have a potential of creating instability within the country; erode confidence of the public in government and its entities; diminish public trust and negatively affect economic development Answers must be found, and urgently put in place, to turn the tide and revive accountability principles in state owned companies. This dissertation moves from the premise that corporate governance principles and practices and strict compliance with the requirements of legislative frameworks hold the much needed answers in addressing the fundamental governance failures and challenges faced by state owned companies and provides an overview of key corporate governance principles provide some pointers as to how these principles must be applied within the governance frameworks of State owned companies.