SGF Inducts Boards, Heads Of MDAs, Decries Irregularities

Secretary to the Government of the Federation (SGF), Mr Boss Mustapha, has expressed worry over irregularities in the roles of governing boards of federal agencies.

Mustapha made the observation at the induction programme for chairmen, governing board members and chief executives of parastatals, agencies and commissions inaugurated by the federal government.

According to him, “Parastatals are government establishments created by statutes to provide specified services, the structure and operating instruments of which are derived from their respective Acts of Establishment.”

He said these parastatals were placed under the supervision of the presidency or a ministry.

Mustapha however, said that the agencies were superintended by a governing board headed by a chairman, to provide policy guidelines and liaise with the supervisory ministry through the permanent secretary.

The SSG said, “They are also appointed for effective monitoring, policy guidance; and ensuring that government policy directives relating to the functions of the parastatal are carried out.

“I have observed with concern divergent interpretations to the roles governing boards of federal parastatals are expected to play in the corporate governance of their organisations.

”Arising from this, a number of worrisome issues have begun to emerge.”

Mustapha listed them to include: Disagreements on who is responsible for the day-to-day running of parastatals and agencies as well as disregard for extant regulations guiding and restricting the conduct of board meetings.

The SGF said, “Others are 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.

“Initiating unlawful disciplinary measures against the chief executive without requisite guidance and approval from the supervisory ministry and instigating the labour unions and associations as agents of distraction in the parastatals.”

Mustapha also said the observed poor and unhealthy relationships existing between governing boards and their CEOs have become very worrisome to the government and are unacceptable.

He said, “This could be avoided if chairmen and members of governing boards acquaint themselves with the instrument of establishment of their respective organisations, where the roles and responsibilities of the board are prescribed.

”Equally relevant are referrals, authorities and other relevant government circulars that guide the conduct of public officers.”

He listed some of the documents to include: Public Service Rules; Financial Regulations; Guide to Administrative Procedures in the Public Service; Public Procurement Act 2007 and Fiscal Responsibility Act 2007.

Mustapha highlighted the roles and responsibilities of boards and councils to include  setting of  operational and administrative policies in accordance with government policy directives and shall supervise the implementation of such policies.

He said, ”A board shall not be involved directly in the day-to-day management of a parastatal or agency and  a minister exercises control of parastatals at policy level through the board of the parastatal only.

”The board should  only operate as a part-time board in accordance with extant rules that forbid allocation of official quarters to members on a permanent basis and use of official vehicles by members on a permanent basis.”

Mustapha added that payment of estacode allowances for only overseas’ travels was only approved by the Office of the Secretary to the Government of the Federation.

The director-general of BPRS, Dasuki  Arabi, said  the induction programme was apt  especially in view of the growing concerns expressed about the weak corporate governance practice. (NAN)