Sat, 29 Feb 2020

The resignation of members from the Nuclear Energy Corporation of South Africa's board is a sign that government interference is corroding governance at strategic state-owned companies, placing the country at risk of falling down a "precipice of downgrades", the Organisation Undoing Tax Abuse said on Thursday.

The stepping down of the final three members of the board emerged on Wednesday morning. Mineral Resources and Energy Minister Gwede Mantashe initially said he had not received their resignations, but would not stop them if they wished to leave, Fin24 reported.

Parastatals including Eskom and South African Airways have faced several shock resignations of top executives and management in recent months.

Few of the outgoing executives have spoken publicly about their reasons for resigning.

Radebe was wrong to axe Necsa board members - here's why

Volmink said the kind of instability seen at state-owned companies had the potential to thrust South Africa "to the precipice of further downgrades".

"There appears to be a critical lack of political leadership and support when it comes to ensuring that the successful NTP Radioisotopes within Necsa remains a viable entity and operates independently of political interference," Volmink said.

NTP Radioisotopes is a Necsa subsidiary.

Mantashe told reporters on Wednesday morning that government interventions into Necsa sought to improve the governance and operational state of the company.

A statement from the Department of Mineral Resources and Energy said a list of proposed names for the Necsa Board had been prepared for submission to Cabinet for concurrence.

More South Africa News

Access More

Sign up for South Africa News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!