Secretary to the Government of the Federation, Boss Mustapha, has called on newly inducted chairmen of governing boards and chief executive officers of parastatals, agencies, and commissions to understand their roles in the corporate governance of their respective organisations.
Mustapha gave the charge at the induction programme for members of Governing Boards of Federal Parastatals and Commissions of the National Citizens Centre, Projects Development Institute, Transmission Company of Nigeria, and Nigeria Christian Pilgrim Commission which held on Monday in Abuja.
In his keynote address, the SGF said there had been divergent interpretations of the roles governing boards of Federal Parastatals are expected to play in the corporate governance of their organisations.
He listed the issues to include “disagreements on who is responsible for the day-to-day running of parastatals and agencies, disregard for extant regulations guiding\restricting the conduct of board meetings, interference in the function of the office of the chief executive officer, issuing directives to staff without recourse to the chief executive officer thereby creating disharmony amongst personnel,” among others.
The SGF noted that the observed poor and unhealthy relationships existing between Governing Boards and their Chief Executive Officers have become very worrisome to the government, noting that the frosty relationship was avoidable “if chairmen and members of governing boards acquaint themselves with the instrument of the establishment of their respective organisations, where the roles and responsibilities of the board are prescribed.”
According to him, the public service rules, financial regulations, Public Procurement Act, 2007, and Fiscal Responsibility Act, 2007 are all tailored to guide the conduct of public officers.
He reminded boards and councils of agencies and commissions that they are not to be involved directly in the day-to-day management of a parastatal or agency.
Also speaking, Minister of State, Finance, Budget, and National Planning, Mr. Clem Agba, charged the officers to be transparent in discharging their responsibilities.
“The ability to overcome the challenges confronting our nation is predicated on transparency, accountability, and inclusive governance, which can only be achieved through inherent capacities of those chosen by the President to lead the process of designing and implementing appropriate policies of the government,” he said.
Earlier in his welcome address, Director General of the Bureau of Public Service Reforms, Dasuki Arabi, said the induction ceremony could not have come at a better time, given the growing concerns expressed about the weak corporate governance practice, the struggle and misunderstanding among Chief Executives, Chairmen, and Members of Boards/Councils in some Federal Parastatals, Agencies, and Commissions.
He said, “It is a known fact that while top-level federal civil servants, such as Permanent Secretaries, Directors and their equivalent in the service grow through the Federal Civil Service and acquire varied public service knowledge and cognate experience in the conduct of government business, most members of Governing Boards of Federal Agencies largely lack such knowledge and experience.
“This is a result of the fact that most of them are appointed from outside the public service and assume duties in their respective agencies with limited knowledge of the workings of the public service, corporate governance practices, and conduct of government business.
“It is, therefore, imperative that the Federal Government looks at how to properly induct/orientate the newly appointed members of Governing Boards of Federal Parastatals, Agencies and Commissions on the ethics and procedures of the Federal Public Service before or immediately after assumption of office. The failure to do this has proven costly to the country, sometimes with disastrous financial resources.”
