SOEs will trip if chief restructuring officers lack power
What does the role of a CRO entail given the political environment SOEs must navigate in SA?
SA’s state-owned enterprises (SOEs) are coming under tremendous pressure to extricate themselves from their financial woes. Any kind of bankruptcy event cannot be the answer because of the obvious cross-default impact such a declaration will have on debt and other instruments in the capital markets. It will also be catastrophic for the government’s standing and credit rating.
Rival ratings agencies agree on one thing: President Cyril Ramaphosa has the ability to turn the SA economy around and with that the financial woes of the SOEs. So how does the government intend to restore the SOEs to health?
Ramaphosa spoke about the appointment of a chief restructuring officer (CRO) at Eskom in June. He said the CRO would be “expected to reposition Eskom financially with careful attention to the mix between revenue, debt and cost structure of the company”. Freeman Nomvalo was duly appointed as the CRO at Eskom...