June 24, 2024
Treasury Wants Politicians Forbidden To Serve As Parastatal Directors In A New Bill

Treasury Wants Politicians Forbidden To Serve As Parastatal Directors In A New Bill

A new bill drafted by the National Treasury proposes preventing politicians from serving as independent directors of government-owned enterprises.

The Government Owned Enterprises Bill of 2024 aims to reduce inefficiencies and streamline the management of these institutions.

According to the legislation, Treasury wants to prohibit anyone who has been affiliated with a political party in the last five years from serving as an independent director.

If passed, the new law will prevent election losers and well-connected political operatives from taking up lucrative positions.

Treasury also wants to prohibit anyone who has worked for the parastatal or its related parties in the previous five years, including its major shareholders, from becoming an independent director.

Individuals who have personal service contracts with the parastatal, its affiliated parties, or its senior management will also be disqualified.

Still, in the proposal, advisers or consultants to the parastatals or its related parties shall not be eligible to be appointed as directors.

Anyone associated with a significant customer or supplier of the parastatal or its related parties, including banks or other financial institutions owned by the government or any of its major shareholders, will also be ineligible.

The bill also proposes prohibiting any MP or County Assembly member from serving on a selection panel that vets directors of government-owned enterprises.

Anyone who is a member of a governing body, or a political party, or has been declared bankrupt will be excluded from the selection panel.

The National Treasury-sponsored bill also proposes barring those who have been convicted of a felony or removed from public office for violating the provisions of the Constitution or any other law from serving as directors.

This bill comes at a time when the government is in the process of folding 140 parastatals across the country in a bid to avoid duplication of roles and reduce the wage bill.

Treasury Wants Politicians Forbidden To Serve As Parastatal Directors In A New Bill

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