The Power of Governance

This book draws on the growing body of knowledge about corporate governance in state-owned enterprises around the world.

Eskom is a South African company that has developed from a state utility under apartheid into an efficient globally competitive state-owned enterprise. In 2001, Eskom received the Power Company of the Year title at the Financial Times Global Energy Awards Ceremony in New York. This book draws on the growing body of knowledge about corporate governance in state-owned enterprises. It locates Eskom’s experience in that context and argues that a state-owned enterprise can be run as efficiently as any other. The key to performance excellence lies in good governance and the authors reveal how a public company can implement good governance practices when government is the major shareholder.

REUEL J. KHOZA was Chairman of Eskom Holdings until August 2005, and is now Chairman of Nedbank Group, Aka Capital and is a director of several other companies. He is also President and a Fellow of the Institute of Directors. Dr Khoza served as a member of the King Committee on Corporate Governance in South Africa in 2002 and convened its task group on integrated sustainability reporting. He is author of Let Africa Lead: African Transformational Leadership for 21st Century Business.
MOHAMED ADAM is Eskom’s Corporate Counsel and Company Secretary. A lawyer by training, he practised as an attorney before joining Eskom as a legal adviser in 1991. He also served as Group International Manager and Legal Manager. Adam was appointed as Eskom’s first company secretary when the state utility was converted into Eskom Holdings Ltd in 2002. That year he also served as co-ordinator of the King Committee task group on integrated sustainability reporting.
Both authors were with Eskom through a period of intense restructuring and transformation. They were instrumental in putting in place the performance agreement with government as shareholder, and played a significant role in the conversion of Eskom into a company. Their unique experience makes this book an essential read for leaders and managers in public and private companies, and in government.

Introduction * PART ONE: THE POWER OF GOVERNANCE * Why Corporate Governance Matters * Hallmarks of Corporate Governance * Leadership and Governance in State-Owned Enterprises * The Legislative and Policy Framework in South Africa * Financial Management and Governance * PART TWO: ENHANCING THE PERFORMANCE OF STATE-OWNED ENTERPRISES * Restructuring State-Owned Enterprises * Appointing the Board of Directors * Shareholder Performance Agreements * Transparency and Reporting * Public Procurement * Conclusion * Appendices