New proposal to bar politicians from being appointed as parastatal directors
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National Treasury proposes a new bill seeking to bar politicians from being appointed as parastatal directors
National Treasury proposes a new bill seeking to bar politicians from being appointed as parastatal directors.
The Government Owned Enterprises Bill of 2024 seeks to weed out inefficiencies and streamline management of these institutions.
As outlined in the piece of legislation, the Treasury is seeking to have all persons affiliated with any political party in the last five years barred from being appointed as independent directors.
If passed, the new law will lock out election losers and well-connected political operatives from taking up the plum posts.
Treasury also wants all persons who have been employed by the parastatal or its related parties, including its major shareholders, in the past five years barred from taking up independent director positions.
An individual who has personal service contracts with the parastatal, its related parties, or its senior management, will also be disqualified.
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Still in the proposal, advisers or consultants to the parastatals or its related parties shall also not be eligible to be tapped as directors
Any person who is affiliated 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 not be eligible.
The bill also proposes barring any person from being on a selection panel that vets directors of government owned enterprises if they are an MP or Member of County Assembly.
A member of a governing body, a political party or anyone declared bankrupt will also not make it to the selection panel as well.
The bill which has been fronted by the National Treasury, has also proposed to bar those who are convicted of a felony; or removed from public office for contravening the provisions of the Constitution or any other law from being appointed as directors.
This bill comes at a time when the government is in the process of folding 140 parastatals in the country in a bid to avoid the duplication of roles and reduce the wage bill.
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