SOEs blighted by ineptitude

25 September 2015 - 02:25 By Nathan Cheiman, Northcliff

Most CEOs of companies either resign or forfeit their bonuses if their company shows a loss in profits. Not so with Eskom, SABC, the Post Office and SAA.One particular chief operating officer, Hlaudi Motsoeneng, who heads up SABC, says that his increase in salary of almost R1-million is justified, because it is in keeping with his position at the broadcaster.Forget about the loss of R401-million this entity chalked up.How ludicrous is that?It is precisely this curious mode of calculation by government officials that impedes the profits of these entities.Clearly, Motsoeneng's conception of what a chief operating officer should earn in a similar position is incompatible with the usual profit and loss functions of financial systems.There is no doubt that Motsoeneng is suffering from delusions of grandeur, based on his claim that he would earn R10-million a year if he worked in the private sector.He also says that he "brings in lots of money".Perhaps CEOs overseas are more ethical. For example, Martin Winterkorn, head of VW, resigned within 48 hours of a scandal, even though he wasn't involved in what has become known as "Dieselgate".He wasn't pushed and his resignation was falling on his sword, so to speak.Why do our politicians and officials cling like Velcro to their positions until the very end? Is it the African way?

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