THE implementation of the Public Entities Corporate Governance Act is expected to start this week as Government frantically seeks to eliminate the challenges that have bogged down the operations of State enterprises and parastatals.
The Public Entities Corporate Governance Act, which introduces a raft of measures aimed at turning around the fortunes of parastatals, was gazetted on May 11, 2018.
Government is now expected to host a workshop this week, which will officially launch the new law governing the operations of parastatals.
The workshop seeks to discuss the modalities of implementing the comprehensive law that has reportedly plunged most parastatal bosses into panic mode.
Last week, Deputy Chief Secretary in the Office of the President and Cabinet, Dr Ray Ndhlukula told The Sunday Mail Business that all is now set for the implementation of the Public Entities Corporate Governance Act.
“Next week (this week) we are going to have a workshop to launch the Act.
“This workshop will mark the proper implementation of the Act as the modalities of implementing the Act will be discussed there,” said Dr Ndhlukula.
The law is expected to clip the wings of parastatal bosses that were running the firms like personal fiefdoms.
Some of the managers had the audacity to increase their salaries even when the parastatals were performing badly.
But Dr Ndhlukula said the days when parastatals were deliberately run down are over.
“The major advantage of this Act is the fact that it clearly defines the roles of stakeholders, the Government, the minister, permanent secretary, the chief executive officer and the board.
“We hope that by doing that, we will eliminate the interference that was being reported. Remember there were complaints that ministers were interfering with the management of parastatals,” said Dr Ndhlukula.
Among other things, the Public Entities Corporate Governance Act is set to introduce a Corporate Governance Unit that will monitor the operations of parastatals.
The Corporate Governance Unit will be housed in the Office of the President and Cabinet and will provide an advisory and centralised support mechanism for line ministries to ensure strict compliance by all public entities with the applicable provisions of the Act.
Further, the Act speaks to the appointment, tenure and conditions of service of boards of public entities.
3,499 total views, no views today