Examination Of The Performance Of The Selected State-Owned Entity In South Africa: Issues And Challenges Surrounding Eskom

This paper aims to examine the performance of the selected state-owned enterprise (SOE) Eskom. After the democratic era of 1994, there were concentrated efforts in both the public and private sectors in South Africa to restructure the economy to reflect more democracy and inclusiveness in the economy. These efforts have led to the government's recognition of SOEs as essential to economic development, particularly in the provision of services such as electricity, transportation, and telecommunications. However, there seems to be a consensus that there is still a long way to go to meet service delivery targets and achieve the expected excellence SOEs, in Eskom. The major SOEs in South Africa have come under criticism and the media has highlighted their shortcomings. Restructuring, Unbundling, and establishment of ministerial roles in electricity are amongst some of the perfect evidence of challenges by this SOE. Poor governance, mismanagement, allegations of fraud and corruption, and lack of financial sustainability seem to characterize this SOE. This paper is purely theoretical and relies on a literature review to support its arguments. The paper takes note of the goal-setting theory and its ideals to extract and explain the arguments. The study draws on journal articles, books, websites, financial reports, government and performance management reports, and other available materials to support the study's question. As remedies, the paper suggests establishing and enforcing accountability systems and penalties for loss of property or money, further restructuring of boards, reviewing appointment processes, and enforcing performance management systems to improve SOE performance.