Abstract
The study investigated the governance structures and procurement practices within Eskom and ACSA state-owned enterprises (SoEs). It aims to understand and determine the good governance and procurement processes that can improve operational effectiveness and efficiency in Eskom and ACSA. The research utilised a purposive sampling method to select fifteen (15) participants from Eskom (7) and ACSA (8) who are employed in the strategic business units of both organisations. Selection criteria were based on the alignment of their job activities with the objectives of the study. Employing a thematic analysis approach in qualitative research design, the study investigated the effectiveness of governance frameworks and procurement systems in achieving organisational objectives. Key objectives included exploring challenges encountered by Eskom and ACSA in governance and procurement, identifying best practices, and proposing recommendations for operational improvement.
The literature review explored governance practices and procurement processes in SoEs such as Eskom and ACSA, revealing complexities and challenges. Existing literature provided insights on governance mechanisms, procurement strategies and areas for improvement. Stakeholder engagement is crucial for governance success, with both organisations prioritising compliance and transparency. Challenges such as corruption and political interference persist, necessitating streamlined regulations. Recommendations stress proactive leadership and improved communication to uphold expected standards.
Ultimately, the study contributed to the body of knowledge by synthesizing existing literature, identifying gaps and proposing practical recommendations for enhancing governance and procurement practices within Eskom and ACSA. By addressing key challenges and leveraging on best practices, this research aimed at supporting the sustainable growth and efficiency in these critical entities, thereby benefitting the economy of South Africa.
KEY TERMS: Regulatory framework, governance, procurement practices, state-owned enterprises, legislative frameworks, operational effectiveness and operational efficiency, enhance, South Africa.