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The Institute of Directors in South Africa (IoDSA) says the intentions outlined by President Cyril Ramaphosa concerning his cabinet are noble, but time will tell whether the right people have been appointed and whether the results truly benefit South Africa and its citizens.
The IoDSA welcomed President Ramaphosa’s commitment that the multiparty cabinet of the Government of National Unity (GNU) will professionalise the public service based on ‘integrity and good governance’, and those appointed in the cabinet are ‘committed, capable, hard-working and also have integrity’.
CEO of IoDSA, Professor Parmi Natesan said the criteria outlined by Ramaphosa aligns with the qualities of ethical and effective leadership outlined in the King IV report. These include integrity, competence, responsibility, accountability, fairness and transparency.
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The King IV report was compiled by the King Committee on Corporate Governance in South Africa. The committee was formed in 1992 when the Institute of Directors in South Africa, after the IoDSA Council, decided it was important for a committee to consider and address corporate governance for the country.
The Committee’s role is to fulfil a thought leadership role promote and advance standards of corporate governance for the benefit of the country and its people. Its objective includes issuing reports and codes of sound governance principles and practices for South Africa.
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Natesan quotes the first principle of King IV, “The governing body should lead ethically and effectively.”
She believes that the linking of ethics and effectiveness is an important connection that is often forgotten. “It is thus critical to have the right people in leadership positions of our country and public sector entities.”
She also makes mention of the seventh principle of the report, which outlines that “the governing body must possess the appropriate balance of knowledge, skills, experience, diversity and independence.” She says it is imperative that people are appointed based on their competence and moral compass, and with the needs of the organisation and its strategic goals in mind.
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The IoDSA is of the view that some of the State-owned enterprises (SOEs) challenges could have been avoided if people were appointed on merit.
“SOEs have experienced challenges because appointments to both their boards and executives have been made largely on political grounds rather than merit,” it says.
The Institute has for many years outlined the importance of the public sector in adopting the principles of good governance as outlined in the King Reports.
“I strongly urge the newly appointed ministers, their deputies and the leadership of SOEs and other public-sector entities to reaffirm their commitment to King IV’s principles—they are the key to turning the optimism of the current moment into reality,” says Natesan.
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