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.