Ministers' prerogative to appoint SOE boards allows power without accountability, warns former PIC director

Recent developments in the appointments of boards of directors to state-owned entities (SOEs) are profoundly concerning, writes Lufuno Mulaudzi, former president of the Public Servants Association of South Africa (PSA).

As a former non-executive director of the Public Investment Corporation, Mulaudzi focuses on the PIC in his opinion piece for News24.

In conversation with Stephen Grootes, he notes that his appointment to this role on the board in 2021 was in line with the mandate to implement the recommendations of the Mpati Commission and to stabilise the PIC.

"The PIC was sitting I think at around R2 trillion of assets under management, which we managed to take to R3. 5 trillion by the time we were removed... so, you can see how important it is that appointments are based on performance."

Despite this demonstrated success, Finance Minister Enoch Godongwana removed most board members when their extended term cameto a close on 14 September 2025, Mulaudzi says.

"The subsequent process leading to the new appointments has introduced significant instability and raised serious governance concerns... The appointment of a new CEO (Patrick Dlamini) concurrently with an entirely new board further heightens concerns regarding continuity and institutional memory."

Mulaudzi says President Cyril Ramaphosa should expedite the implementation of the Zondo Commission of Inquiry's recommendation for an SOEs Commission to manage all board appointments.

"The point is the Act giving the prerogative to Ministers to appoint board members to SOEs, because when you have a single person with that authority and no one is holding that person to account, it allows a situation where people abuse their powers."

Scroll up to the audio player to listen to Mulaudzi's argument