From the CEO’s Desk: Reform or Relapse: The President’s SONA Crossroads
Ramaphosa’s State of the Nation speech will be closely monitored for proof of leadership in several key areas.
Undoubtedly, one of his biggest challenges is addressing failing state institutions. How will the President confront the scourge of under-performing Government Departments and agencies like SAPS, SITA, state-owned-enterprises, and the majority of municipalities? What is the plan? How will he drive change?
We don’t need to wait for the Finance Minister’s Budget speech to determine if the current leadership prioritises defending what exists, or embraces government reform to demonstrate clear commitment to the ‘Citizen First’ values and intent of our Constitution.
We entrust our leaders with the task of upholding our Constitution; it is their main job.
The country can ill afford not to embrace productivity gains offered by the private sector capabilities vs propping up SOEs, notably Eskom. Taxpayers’ money could be better spent elsewhere.
Central to this theme is competent and ethical leadership, or the lack thereof.
To revitalise these failed institutions, we need accountability and world class expertise. We also need to see political appetite to root out corruption and incompetence where it occurs. Potential investors listening to SONA will be filtering out meaningless platitudes, and fine tuning their ears to talk of reform, progress, and jobs-led growth.
Ramaphosa will be aware that promises alone will not be enough, as was starkly illustrated again over the past week in relation to the long-awaited Eskom unbundling.
With much hope pinned to the proposed new independent Transmission System Operator – particularly in relation to private sector investment – Eskom and Electricity and Energy Minister Kgosientsho Ramokgopa are now saying the new transmission company must remain an Eskom asset.
The apparent unbundling ‘backslide’ coincides with another electricity surprise – and another illustration of why private sector expertise is needed in matters of service delivery. The National Energy Regulator of South Africa (NERSA) has announced hiked Eskom tariffs for the next two years to compensate for its own R54 billion accounting error.
Equally concerning is that Eskom and NERSA consulted privately to hike the tariff, prompting legal pushback.
Clearly, while Government may talk about reform and transparency, it should be measured by its actions rather than words.
No doubt Ramaphosa has heard all of this before. What remains unclear is whether his State of the Nation will deliver more theory than practice.
John Lawson
CEO of the Cape Chamber of Commerce and Industry