The Standing Committee on Public Accounts (Scopa), has announced on Wednesday that it will schedule hearings with former boards of state-owned entities.
This decision was derived during a briefing with the liquidators of SA Express (SA Express) on the process of liquidating the airline.
According to Faith Ndenze, spokesperson for Scopa, questions were raised about the role played by the former boards of directors in ensuring proper governance and effective consequence management at state-owned companies.
“It became evident during the briefing that the collapse of entities such as SA Express and South African Airways might have occurred in part due to a lack of governance from their boards,” Ndenza said.
The committee will also schedule a hearing with the Department of Public Enterprises to identify which “loopholes” have been exploited during the periods of poor governance.
“Scopa will also schedule a hearing with the Department of Public Enterprises to ascertain the loopholes that have contributed to the failure of effective oversight over struggling state-owned entities.
“A number of the troubled state-owned entities fall under the ambit of the department, which is why Scopa wants to determine and interrogate how the department conducts oversight over these entities,” Ndenza said.
“Scopa is also concerned with the movement of senior executives from one entity to another under the department’s watch and wants the department to justify these recruitment processes.”
Ndenza further explained that both the National Treasury and Law enforcement agencies have been invited to provide an update with their respective departmental tasks.
“The committee will also invite the National Treasury to brief the committee on the decisions it has taken regarding the financing of these state-owned entities, particularly regarding questions of financial mismanagement.
“The committee will also invite law enforcement agencies in the form of the Anti-Corruption Task Team to brief the committee on its progress with investigating cases at state-owned entities,” she said.
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Source: IOL