Bill to form a parastatals’ watchdog to hasten reforms
What you need to know:
- The GIC will be managed by a board of directors, headed by a non-executive chairperson appointed by the President.
- The chief executive officer of the GIC and its corporate secretary will also be members of the board.
A government agency will be formed to watch over parastatals if MPs pass a Bill to kickstart reforms in state corporations.
The Government Investments Corporation (GIC) tops the proposals of the Government Entities Bill 2014 which is being drafted by the Commission for the Implementation of the Constitution (CIC).
The Bill aims at merging, dissolving and coming up with new state corporations. The structure emphasises cost-cutting measures, efficiency and profit-making and is supposed to be in line with Vision 2030.
The GIC to be owned by the Treasury on behalf of the government will guide the investments undertaken by the parastatals.
“GIC shall be the holding company for the national government in state corporations and shall in that regard exercise ownership, investment and oversight roles over the corporations on behalf of the Treasury,” the Bill reads.
ACCOUNTABILITY
The GIC will be managed by a board of directors, headed by a non-executive chairperson appointed by the President. The others will be the Treasury Principal Secretary and four members.
The chief executive officer of the GIC and its corporate secretary will also be members of the board. The board, which will be formed under the Companies’ Act, will be accountable to the President.
The proposed law also sets new terms of accountability and service for boards of directors and CEOs who will be tasked with guiding the parastatals — henceforth to be referred to as government owned entities — to contribute to their growth.
The Bill proposes the establishment of national and county government-owned parastatals which will be accountable to a single agency that will take over the roles of the State Corporations Advisory Committee and the Inspector-General (Corporations).
The agency — the National and County Agencies Oversight Office — will be headed by a Director-General whose appointment terms will be determined by the Salaries and Remuneration Commission (SRC).
