State corporations need board blacklist :: Namibia Internet Gateway cc ::

Articles: State corporations need board blacklist

Posted by admin on Friday, July 09, 2004 - 02:23 AM

GOVERNMENT has been urged to set up a blacklist of people who should be prevented from serving as directors on the boards of State-owned corporations.
This is one of a number of recommendations made to improve "corporate governance" at parastatals, following the probe of the Presidential Commission of Inquiry into the Social Security Commission (SSC). "The [Commission] is of the view that a blacklist of delinquent board members, executive officers and financial managers be established. This record should be resorted to prior to an appointment in any State-owned enterprise, entity or statutory body," the inquiry said in its report to President Sam Nujoma. The Commission identified "poor corporate governance at the SSC as one of the most prominent areas requiring attention". Lack of communication between the board and management, insubordination towards the board, and the alleged poor performance of the chief executive officer were said to have contributed to weak administration of the institution. One example was the management's refusal to accept that the board had refused a request to increase their car allowances, by 95 per cent in some cases. "It is apparent that the SSC Board was unable to ensure that the SSC management effectively implemented its decisions," said the report. When the board gave in to the demands of management and "retrospectively" approved car allowances, the inquiry stated in the report that the board "was unable to effectively control and direct" the managers. In some case, said the commission of inquiry, one or two board members "irregularly assumed powers of the board". After looking at the irregularities concerning the investments of millions of dollars at the SSC, the inquiry recommended that a law be made to allow for the "forfeiture of assets illegally obtained or used in the commission of a criminal offence, financial intelligence and corruption". The report said cash was used to cover the money trail from ill-gotten investment deals. The commission generally proposed that Government should look broadly at the way other countries, such as South Africa, dealt with corporate governance issues.

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