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An Alternative Approach to Parliamentary Oversight of Sovereign Guarantees in South Africa: ESKOM as a Polar Case Study

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  • Anthony Frank Julies

    (University of London, UK)

Abstract

The research paper constructs and compares two structural risk models. A South African sovereign risk model and an ESKOM credit risk model. The interaction between these models explains the statistically significant causal relationship between corporate governance practices at the level of a public entity and government finance conditions between 2004 and 2019. It shows that a more effective approach to parliamentary oversight of government guarantees in South Africa can deliver better sovereign credit rating outcomes in post-COVID-19 South Africa. It will require proactive innovative measures in the application of government guarantees issued to SOEs aimed at improving institutional operational performance within a government-wide risk management framework. The paper concludes that economic transformation, with restitutive intent, is advanced with the adoption of a dynamic and evidenced-informed approach in addressing the complex interplay of prevailing socio-economic, government finance, and political environmental conditions in South Africa.

Suggested Citation

  • Anthony Frank Julies, 2024. "An Alternative Approach to Parliamentary Oversight of Sovereign Guarantees in South Africa: ESKOM as a Polar Case Study," International Journal of Sustainable Economies Management (IJSEM), IGI Global Scientific Publishing, vol. 12(1), pages 1-27, January.
    • Handle: RePEc:igg:jsem00:v:12:y:2024:i:1:p:1-27
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    References listed on IDEAS

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