Devaluing of state-owned entities: a comparative of SOE status between the 4th, 5th and 6th democratic administration

Abstract

The African National Congress (ANC)-led government established a Reconstruction and Development Programme (RDP) policy in 1994, which included the introduction of State-Owned Enterprises (SOEs), with the goal of driving the economy and contributing to service delivery. SOEs are companies that are profit making, yet governments own them. As a result, SOEs are owned by the residents who elect their government and pay taxes to keep them functioning. These citizens are stakeholders in these enterprises through the government's administration. It can be argued that corruption, maladministration, and inadequate leadership accountability are the causes of the devaluation of state-owned enterprises. The 4th and 5th administration were thought to be corrupt, but the corruption appears to be immersed in the current 6th administration, with the SOEs being privatized. Corruption and similar corporate governance violations in state-owned Entities are becoming more common (SOEs). The purpose of this paper is to examine the position of State-Owned Entities and observe instances of incompetence, corruption and political interference in the operation of SOEs throughout the 4th, 5th and current 6th administration. Furthermore, this paper is a conceptual paper and it has relied heavily on secondary data and existing literatures for analysis and interpretation. The paper recommends that SOEs should be transparent to the public or stakeholders on its affairs, and the ANC to stop interfering in the administration and operation of SOEs.